Cenvat credit on job work input services upheld where binding precedent on identical facts allowed the claim.

Cenvat credit on input services attributable to goods cleared in the course of job work was upheld where the facts were identical to an earlier binding decision. The Tribunal found the Revenue's relied-upon ruling inapplicable because it concerned a different issue involving non-availment of exemption under Notification No. 8/2005-ST. Applying the controlling precedent in Aurangabad Auto Engg Pvt Ltd, the Tribunal accepted that the assessee was entitled to credit and set aside the disallowance. The denial of credit therefore did not survive, and consequential relief followed in favour of the assessee.

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Issues: Whether the appellant was entitled to Cenvat credit on input services attributable to the goods cleared in the course of job work.

Analysis: The Tribunal noted that the Revenue's reliance on another decision did not answer the present controversy, as that case dealt with a different question concerning credit where exemption under Notification No. 8/2005-ST was not availed. The controlling precedent was found to be the decision in Aurangabad Auto Engg Pvt Ltd, where on identical facts it was held that the assessee was entitled to Cenvat credit. Following that binding and factually similar precedent, the Tribunal accepted the appellant's claim.

Conclusion: The appellant was held entitled to Cenvat credit, and the disallowance was set aside in favour of the assessee.

Final Conclusion: The appeal succeeded and the denial of credit did not survive, with consequential relief granted.

Ratio Decidendi: Where the facts are identical to an earlier binding decision permitting credit, Cenvat credit cannot be denied merely because the goods were cleared in the course of job work.

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