Cenvat credit on duty-paid inputs upheld where supplier did not use advance licence exemption, following prior precedent.

Cenvat credit was available to the recipient where the input supplier cleared goods on payment of duty instead of claiming the exemption for clearances against invalidated advance licences. CESTAT followed its prior decision in the appellant's own case and held that the duty paid by the supplier remained creditable to the recipient, so the Revenue's objection failed.

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Issues: Whether the appellant was entitled to avail Cenvat credit of duty paid by the suppliers of raw material when the Revenue contended that the suppliers ought to have cleared the goods against invalidated advance licences under the exemption notification.

Analysis: The issue was treated as already settled by a prior decision in the appellant's own case. The Tribunal followed that precedent and held that where the input supplier clears goods on payment of duty instead of availing the exemption meant for clearances against invalidated advance licences, the duty paid by the supplier remains available as credit to the recipient. No different view was found warranted.

Conclusion: The appellant was entitled to Cenvat credit of the duty paid by the suppliers, and the Revenue's objection was rejected.

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