Cenvat credit on steel inputs for in-house fabrication and maintenance was upheld based on prior precedent.

Cenvat credit on MS sheets and MS plates used within a cement factory for fabrication of plant and machinery components, and for repairs and maintenance, was held admissible. The Tribunal noted that the same issue had already been accepted in the assessee's own earlier period by applying the jurisdictional High Court ruling, and that a similar view had been taken in another Tribunal decision involving steel plates and channels used for fabrication. In the absence of any contrary reason to depart from those precedents, the departmental challenge failed and the credit allowance was sustained.

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Issues: Whether Cenvat credit was admissible on MS sheets and MS plates used in the factory for fabrication of plant and machinery components and for repairs and maintenance.

Analysis: The dispute related to credit on steel items used for in-house fabrication of components of plant and machinery in a cement factory. The same issue had already been accepted in the assessee's own earlier period by following the jurisdictional High Court decision, and a similar view had also been taken in another Tribunal decision on steel plates and channels used for fabrication. In these circumstances, no contrary reason was found to disturb the order allowing credit.

Conclusion: Cenvat credit on the MS sheets and MS plates was admissible and the departmental challenge failed.

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