Cenvat credit on inputs for storage tanks inside the factory was upheld, following settled High Court precedent.

Cenvat credit was held admissible on MS plates, HR plates, beams and similar inputs used to fabricate storage tanks within the manufacturing premises, because the jurisdictional High Court had already settled that such inputs qualify for credit when used in factory construction of this kind. The Tribunal followed that settled position and treated the contrary view taken in adjudication as no longer good law. On that basis, the denial of Cenvat credit was set aside in favour of the assessee.

---

---

Issues: Whether Cenvat credit was admissible on MS plates, HR plates, beams and similar inputs used in the fabrication of storage tanks installed within the manufacturing premises.

Analysis: The admissibility of credit on inputs used for fabrication of storage tanks had already been settled by the jurisdictional High Court and followed in later decisions. Applying that settled position, the Tribunal held that the inputs used for constructing storage tanks within the factory were eligible for Cenvat credit. The contrary view relied upon in the adjudication was treated as no longer good law.

Conclusion: The issue was decided in favour of the assessee, and the denial of Cenvat credit was set aside.

---