Cenvat credit on repair materials: iron and steel used for plant repairs held not available, appeal dismissed under prior precedent.

Whether Cenvat credit is available for iron and steel used in repair of plant and machinery was the central issue; the Tribunal denied credit on these inputs and the appeal raised a substantial question of law which the parties accepted was covered by a directly similar earlier decision favouring the Revenue. The court answered the substantial question against the assessee and dismissed the appeal, affirming that iron and steel used in repair work are not eligible for Cenvat credit in the circumstances considered and that prior precedent controls the outcome.

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Issues: (i) Whether the appellant is eligible to avail Cenvat Credit of iron and steel used for repairing of plant and machinery?

Analysis: The Tribunal disallowed Cenvat Credit on iron and steel used for repairing plant and machinery and the appeal was admitted on a substantial question of law under Section 35-G of the Central Excise Act, 1944. A directly similar question was earlier decided in favour of the Revenue in Central Excise Appeal No. 99 of 2014 dated 27.02.2015. The parties before the Court accepted that the present substantial question of law is squarely covered by that earlier decision.

Conclusion: The substantial question of law is answered in favour of Revenue and against the assessee; the appeal is dismissed.

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