CENVAT credit on tubes and flaps allowed as eligible inputs and accessories used in tyre manufacture.

CENVAT credit on duty-paid tubes and flaps used in the manufacture and clearance of tyres was held admissible because the Tribunal followed its earlier decision in the assessee's own case, where such items were treated as accessories and eligible inputs for credit. The Tribunal also noted that the Revenue's inconsistent stance in issuing other notices on the same goods did not justify a different result. On that basis, it found no reason to depart from the co-ordinate Bench view and allowed credit.

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Issues: Whether CENVAT credit was admissible on tubes and flaps used in the manufacture and clearance of tyres.

Analysis: The dispute concerned the eligibility of credit on duty-paid tubes and flaps received by the assessee and cleared along with tyres. The Tribunal noted that the same issue had already been decided in the assessee's own case by a co-ordinate Bench, which held that tubes and flaps are accessories and eligible inputs for the purpose of CENVAT credit. It also noted that the Revenue's inconsistent approach in denying credit while issuing other notices on the same goods did not justify a different view. Following the earlier decision, the Tribunal found no reason to depart from that conclusion.

Conclusion: CENVAT credit on tubes and flaps was held admissible, and the assessee succeeded.

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