Tribunal allows appeals, remands cases for fresh decision on service tax credit eligibility.

The Tribunal allowed the appeals by way of remand, setting aside the impugned orders and remanding the cases to the original authority for a fresh decision. The parties were given liberty to approach the Tribunal for further orders based on the outcome of related cases. The judgment clarified the eligibility to claim credit of service tax paid on various services for paying duty on manufactured goods, following the Bombay High Court's ruling in the Ultratech Cement case. The Tribunal emphasized the need for fresh decisions based on this ruling and disposed of stay petitions filed by the appellants.

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Issues:
Whether appellants are eligible to take credit of service tax paid on different services for paying duty on goods manufactured by them.

Analysis:
The judgment involves the issue of whether the appellants can claim credit of service tax paid on various services for the purpose of paying duty on goods they manufacture. The Tribunal referred to a previous decision concerning a case involving CST, Chennai Vs. M/s. Murugappa Management Services Ltd. & Others. The Tribunal observed that the order of the Bombay High Court in the case of Ultratech Cement did not consider the provisions of Section 37(2) of the Central Excise Act, which limits the rule-making power to grant credit for tax paid on services used in or in relation to the manufacture of final excisable goods. Despite this, in the absence of a stay order against the Bombay High Court's decision and the absence of contrary decisions from the Madras High Court or the Supreme Court, the Tribunal directed the remand of the cases to the original authority for a fresh decision based on the Bombay High Court's ruling in the Ultratech Cement case.

The Tribunal allowed the appeals by way of remand, setting aside the impugned orders in these cases and remanding them to the original authority for a fresh decision. The parties involved were given the liberty to approach the Tribunal for further orders based on the outcome of the Madras High Court's decision in cases filed against the Tribunal's order in the Sundaram Brake Linings case. Following the precedent set by the previous decision, the impugned orders in the present cases were also set aside, and the matters were remanded to the original authority for a fresh decision on the same terms. Additionally, the stay petitions filed by the appellants were disposed of by the Tribunal.

In conclusion, the judgment addresses the issue of eligibility for claiming credit of service tax paid on various services for the purpose of paying duty on manufactured goods. The decision provides clarity on following the Bombay High Court's ruling in the Ultratech Cement case and emphasizes the need for fresh decisions by the original authority based on this ruling. The Tribunal's decision to remand the cases and allow the appeals is subject to the outcome of the Madras High Court's decision in related cases, ensuring that parties have the opportunity to seek further orders if necessary.

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