2011 (11) TMI 522 - AT - Service Tax

Whether the appellants are eligible to take credit at service tax paid on different services for the purpose of paying duty in respect of various goods manufactured by them Held that - The order of the Hon ble Bombay High Court extending the credit of tax paid on all services used in relation to the business of manufacturing the final product is required to be followed, since this order of the Hon ble Bombay High Court was not before the authorities below when they decided the present cases set aside the impugned orders in respect of both appeals and remand the matter to the respective original authorities for fresh decision.

Summary

Issues involved: Eligibility of the appellants to take credit at service tax paid on different services for paying duty in respect of various goods manufactured by them.

The judgment by the Appellate Tribunal CESTAT, Chennai, addressed the issue of whether the appellants are entitled to take credit for service tax paid on various services to offset duty liabilities on goods manufactured by them. The Tribunal referred to a previous decision involving CST, Chennai Vs. M/s. Murugappa Management Services Ltd. & Others, where it was noted that the Hon'ble Bombay High Court's order extended the credit of tax paid on all services used in relation to manufacturing final products. Despite the absence of a stay order or contrary decisions from the Madras High Court or the Supreme Court, the Tribunal decided to remand the cases to the original authorities for fresh decisions in line with the Bombay High Court's ruling. Consequently, the impugned orders in the present cases were set aside, and the matters were remanded to the original authority for reconsideration based on the principles established in the Ultratech Cement case. This decision followed the same terms as the previous ruling, emphasizing the need to await the Madras High Court's final order in related cases. The parties involved were granted the liberty to seek further orders from the Tribunal as necessary following the Madras High Court's decision. The judgment was pronounced in open court on 2.11.11.