Cenvat credit on damaged returned cement was upheld where the goods could be reprocessed and prior findings applied.

Cenvat credit was held admissible on cement returned in damaged condition for reprocessing. CESTAT New Delhi followed its earlier decision in the assessee's own case and accepted the prior factual finding that damaged cement could be reprocessed, so the credit benefit remained available. The department's reliance on a chemist's report was rejected because it related to another company and did not apply to the assessee's facts.

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Issues: Whether Cenvat credit was admissible on cement returned in damaged condition for reprocessing.

Analysis: The dispute concerned cement received back in damaged condition during the relevant period. The Tribunal followed its earlier decision in the assessee's own case and noted that the chemist's report relied upon by the department related to another company and could not be applied to the assessee's facts. The earlier factual finding that damaged cement could be reprocessed and that the assessee was entitled to the credit benefit was treated as applicable on the present record.

Conclusion: Cenvat credit was admissible to the assessee on the damaged returned cement.

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