Cenvat credit on structural items for capital goods foundations upheld under settled precedent and later binding authority.

Cenvat credit was held admissible on MS plates, HR coils, channels, angles and similar structural items used to fabricate foundations and supporting structures for capital goods. The Tribunal noted that credit on such items had been consistently allowed in later decisions, and that the contrary Larger Bench view was no longer good law after a subsequent High Court ruling. On that settled line of authority, the denial of credit was found unsustainable and the order was set aside.

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Issues: Whether Cenvat credit was admissible on MS plates, HR coils, channels, angles and similar structural items used for fabrication of foundations and supporting structures for capital goods.

Analysis: The items in question were procured and used for fabrication of foundations and other supporting structures for capital goods. Credit on such structural items had been consistently allowed in Tribunal decisions, and the contrary Larger Bench view was held to be no longer good law in light of the later High Court decision. The issue was treated as settled by the consistent line of authorities.

Conclusion: Cenvat credit on the structural items was admissible and the issue was decided in favour of the appellant.

Final Conclusion: The denial of credit was unsustainable, the impugned order was set aside, and the appeal succeeded.

Ratio Decidendi: Cenvat credit is admissible on structural items used for fabrication of foundations and supporting structures for capital goods when the contrary view has been displaced by later binding authority and the issue stands settled by consistent precedent.

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