CENVAT credit denial cannot survive once the appellate ruling relied on has been reversed.

CENVAT credit denial based on an earlier appellate view could not be sustained once the CESTAT order underlying that view had been reversed. The later judicial position governed the dispute, and the first appellate authority's contrary determination lost its foundation. On that basis, the impugned appellate order was quashed and the assessee succeeded.

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Issues: Whether the order of the first appellate authority sustaining denial of CENVAT credit could be maintained after the order of the CESTAT, which was relied upon by that authority, had already been reversed.

Analysis: The dispute concerned the claim of CENVAT credit for a subsequent period on the basis of an earlier adverse appellate view. The material foundation for the first appellate authority's decision was the CESTAT order. That order had since been reversed, and the later judicial position therefore governed the issue.

Conclusion: The contrary view taken by the first appellate authority could not be sustained and was set aside in favour of the assessee.

Final Conclusion: The writ petition succeeded and the impugned appellate order was quashed.

Ratio Decidendi: Where the legal basis of an appellate determination has been reversed, the contrary view resting on that basis cannot survive.

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