CENVAT credit on common inputs for exempted and dutiable goods followed binding Rule 57C and 57CC interpretation.

CENVAT credit on inputs used for both dutiable and exempted goods was held governed by the Court's earlier interpretation of Rule 57C and Rule 57CC of the Central Excise Rules, 1944, where the same question had already been answered against the revenue. Because the controversy was no longer res integra, the later appeal was decided consistently with that binding interpretation, and the assessee's position prevailed on admissibility of credit despite the absence of separate accounts and non-reversal of 8% on exempted clearances.

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Issues: Whether credit of duty on inputs used both in dutiable and exempted goods was admissible when separate accounts were not maintained and 8% duty was not reversed on clearance of exempted goods under the erstwhile Central Excise Rules, 1944.

Analysis: The appeal was held to be covered by the Court's earlier decision construing Rule 57C and Rule 57CC of the Central Excise Rules, 1944. On that reasoning, the question of admissibility of credit in such circumstances had already been answered against the revenue, and the present matter was treated as no longer res integra.

Conclusion: The issue was decided against the revenue and in favour of the assessee.

Final Conclusion: The appeal could not succeed because the controversy stood concluded by the Court's prior ruling on the same question under the Central Excise Rules, 1944.

Ratio Decidendi: Where the Court has already authoritatively interpreted the governing excise credit rules on the same issue, a later appeal raising the identical question is to be decided consistently with that binding interpretation.

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