2012 (7) TMI 413 - AT - Service Tax

Appellate Tribunal allows appeals, remands cases based on service tax credit ruling

The Appellate Tribunal CESTAT, Chennai allowed all twenty appeals, remanding the cases to the original authorities for reconsideration based on the ... Whether the appellants are eligible to take credit of service tax paid on various services for the purpose of paying duty in respect of various goods manufactured by them - Held that:- Order of the Bombay High Court in case of CCE Vs. Ultratech Cement Ltd (2010 -TMI - 78203 - BOMBAY HIGH COURT) extending credit of tax paid on all services used in relation to the business of manufacturing the final product, was not before the authorities below when they decided the present cases - Appeals are allowed by way of remand. Issues involved:- Eligibility of appellants to take credit of service tax paid on different services for paying duty on manufactured goods.Analysis:The judgment by the Appellate Tribunal CESTAT, Chennai revolves around the issue of whether the appellants can claim credit for service tax paid on various services to offset duty liabilities on their manufactured goods. The Tribunal referred to a previous batch of twenty appeals where a similar issue was addressed. The Tribunal noted a decision by the Bombay High Court in the case of Ultratech Cement, which extended the credit of tax paid on all services used in relation to manufacturing final products. Despite the absence of a stay order against this decision and no contrary rulings from the Madras High Court or the Supreme Court, the Tribunal decided to remand the cases to the original authorities for fresh consideration based on the Bombay High Court's ruling. Consequently, the Tribunal set aside the impugned orders in the present cases and remanded them for reconsideration based on the principles established in the Ultratech Cement case.Furthermore, the Tribunal allowed all twenty appeals by way of remand, subject to the final decision of the Madras High Court in related cases. The parties involved were granted the liberty to approach the Tribunal for further orders based on the outcome of the Madras High Court's decision. Following the precedent set by the earlier decision, the impugned orders in the present cases were also set aside, and the matters were remanded to the original authorities for fresh consideration on the same terms. Additionally, the stay petitions filed by the appellants were disposed of as part of the judgment. The Tribunal's decision aimed to ensure consistency in applying the principles established in the Ultratech Cement case and allowed for further legal recourse based on the Madras High Court's final ruling.