Cenvat credit on inputs in waste or scrap was upheld where prior Tribunal precedent covered the same manufacturing facts.

Cenvat credit on inputs contained in defective dry cell batteries treated as waste or scrap was found to remain admissible where the issue had already been covered by an earlier final order in the assessee's own case on similar facts. The Tribunal applied that precedent for the relevant period and accepted that credit is allowable in respect of inputs embedded in waste, refuse or by-products arising during manufacture. On that basis, the contrary view in the impugned order was not accepted, and the demand for reversal of credit was held unsustainable.

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Issues: Whether Cenvat credit was reversible in respect of inputs contained in defective dry cell batteries treated as waste or scrap, and whether the show cause notice demanding reversal was sustainable.

Analysis: The dispute was covered by an earlier final order of the Tribunal in the assessee's own case on similar facts. The Tribunal treated that precedent as applicable for the relevant period and accepted that credit was admissible in respect of inputs contained in waste, refuse or by-products arising during manufacture. On that basis, the view taken in the impugned order that credit was not admissible was not accepted.

Conclusion: The demand was held unsustainable and the issue was decided in favour of the assessee.

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