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2012 (5) TMI 321 - AT - Central ExciseCredit of service tax paid on different services for the purpose of paying duty in respect of various goods manufactured - held that - In view of decision in MURUGAPPA MANAGEMENT SERVICES LTD & Others (2011 (10) TMI 501 (Tri)) and Ultratech Cement Ltd. (2010 (10) TMI 13 (HC)) while decided the issue in favor of assesse matter remanded back for fresh decision.
Issues involved: Eligibility of appellants to take credit of service tax paid on different services for paying duty on manufactured goods.
Analysis: The judgment revolves around the issue of whether the appellants can avail credit of service tax paid on various services for the purpose of discharging duty on the goods they manufacture. The Tribunal refers to a previous batch of twenty appeals where a similar issue was addressed. The Tribunal cites a Final Order wherein it was observed that the Bombay High Court's ruling in the Ultratech Cement case, extending credit of tax paid on all services used in relation to the business of manufacturing final products, should be followed. Despite the absence of contrary decisions from the Madras High Court or the Supreme Court, the Tribunal sets aside the impugned orders in the current appeals and remands the cases to the original authorities for a fresh decision based on the Bombay High Court's ruling in the Ultratech Cement case. The Tribunal allows the twenty appeals by way of remand, subject to the Madras High Court's decision in a related case. The parties are granted the liberty to seek further orders from the Tribunal based on the outcome of the Madras High Court's decision. Following the Tribunal's earlier decision, the impugned order in the present case is also set aside, and the matter is remanded to the original authority for a fresh decision on the same terms. Additionally, the stay petition filed by the appellant is disposed of by the Tribunal. In conclusion, the judgment emphasizes the significance of the Bombay High Court's ruling in extending credit for tax paid on services used in the manufacturing process. The Tribunal's decision to remand the cases to the original authorities for fresh consideration aligns with the principles laid down in the Ultratech Cement case, pending any contrary rulings from higher courts.
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