Cenvat credit on foundation materials for a power plant was allowed as capital goods or inputs under binding precedent.

Cenvat credit was held admissible on cement and steel bars used in the structural foundation supporting a power plant, either as capital goods in the nature of accessories or alternatively as inputs. The Larger Bench ruling and supporting precedents were treated as binding, and no surviving dispute remained for further adjudication. On that basis, the disallowance of credit could not be sustained and was set aside in favour of the assessee.

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Issues: Whether Cenvat credit was admissible on cement and steel bars used in the structural foundation supporting the power plant, either as capital goods or as inputs.

Analysis: The Larger Bench had already held that such goods are eligible for Cenvat credit as capital goods in the nature of accessories, or alternatively as inputs, relying on the applicable judicial precedents. In view of that binding determination, and as no other dispute survived for adjudication, the impugned order could not be sustained.

Conclusion: The issue was decided in favour of the appellant and the disallowance of credit was set aside.

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