Cenvat credit on spent sulphuric acid: prior binding ratio applied where identical facts had already been decided

Reversal of Cenvat credit on spent sulphuric acid arising in the manufacture of LABSA was held not sustainable where the same issue had already been decided in the assessee's favour on identical facts. The Tribunal followed its earlier final order, which in turn had applied the Madras High Court ratio in the assessee's own matter, and found no material change in facts or circumstances. The appeal was allowed with consequential relief, if any, as per law. The principle applied was that an earlier binding ratio should be followed when the dispute and factual matrix remain unchanged.

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Issues: Whether reversal of Cenvat credit was warranted in respect of spent sulphuric acid arising in the manufacture of LABSA and cleared without payment of duty under Notification No. 06/2002-CE dated 01.03.2002.

Analysis: The issue had already been decided in the same assessee's case by an earlier final order, which had followed the ratio of the Madras High Court in the assessee's own matter. Finding no change in facts or circumstances, the Tribunal followed the earlier decision.

Conclusion: Reversal of Cenvat credit was not sustainable and the appeal was allowed with consequential relief, if any, as per law.

Ratio Decidendi: Where the same issue on identical facts has already been decided in the assessee's favour and no material change in circumstances is shown, the Tribunal should follow the earlier binding ratio.

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