CENVAT credit on trial-run and testing inputs for capital goods is admissible under binding precedent.

CENVAT credit is admissible on inputs used for trial run and testing of capital goods, as the issue was treated as settled by binding Supreme Court precedent on credit for trial and testing inputs. On that basis, the Revenue's challenge was rejected and the availability of credit was affirmed.

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Issues: Whether CENVAT credit is admissible on inputs used for trial run and testing of capital goods.

Analysis: The issue had already been settled by the Supreme Court in relation to the principle governing availability of credit on inputs used for trial and testing purposes. In light of that binding precedent, the controversy was treated as no longer open for reconsideration.

Conclusion: CENVAT credit is admissible on inputs used for trial run and testing of capital goods, and the Revenue's challenge fails.

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