Modvat credit eligibility for Hytherm 500 follows binding precedent on identical facts under Rule 57A.

Hytherm 500 was treated as an eligible input for Modvat credit under Rule 57A because the Tribunal had already decided the same item in the assessee's favour on identical facts. That binding precedent controlled the later dispute, so the denial of Modvat credit could not be sustained. The commentary states that once an input has been recognised as eligible under the Modvat scheme on the same facts, the same treatment must apply in subsequent cases.

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Issues: Whether Hytherm 500 was an eligible input for Modvat credit under Rule 57A.

Analysis: The Tribunal relied on its earlier decision holding the same item eligible under Rule 57A and also on the appellant's own earlier final order following that view. Since the issue was already covered by binding Tribunal precedent on identical facts, the denial of Modvat credit could not be sustained.

Conclusion: Hytherm 500 was held to be an eligible input under Rule 57A and the appeal was allowed in favour of the assessee.

Ratio Decidendi: Where an input has already been held eligible under the Modvat scheme on identical facts, the same treatment must follow in subsequent cases.

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