Cenvat credit on countervailing duty for imported steam coal upheld where existing precedent governed the exemption issue.

Cenvat credit on countervailing duty paid on imported steam coal was found admissible because the dispute was governed by the Cenvat Credit Rules, 2004 read with the relevant exemption notifications, and existing binding precedent had already covered the same credit restriction question. The Court noted that the departmental challenge did not justify a fresh re-examination and that no substantial question of law arose. As a result, the Tribunal's view in favour of the assessee was left undisturbed and the credit claim was sustained.

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Issues: Whether Cenvat credit was admissible on countervailing duty paid on imported steam coal in the light of the relevant exemption notifications and Rule 3 of the Cenvat Credit Rules, 2004.

Analysis: The dispute turned on the interplay between the customs notification granting concessional countervailing duty on imported coal and the Cenvat Credit Rules, 2004. The Court noted that the issue had already been considered in binding and persuasive precedent, including earlier decisions dealing with the same imported coal and the same credit restriction question. It held that the matter was squarely covered by the existing judicial view and that the departmental challenge did not warrant a fresh re-examination.

Conclusion: Cenvat credit on the countervailing duty paid on imported steam coal was held to be admissible, and the departmental appeal was rejected.

Final Conclusion: The Court found no substantial question of law arising for decision and left undisturbed the Tribunal's view in favour of the assessee.

Ratio Decidendi: Where the controversy on Cenvat credit for imported coal is already covered by binding precedent, the credit cannot be denied by importing restrictions from a different exemption structure unless the governing notification or rule expressly bars such credit.

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