Service tax credit for job-work manufacture recognised under settled Tribunal precedent and Notification No. 214/86-CE.

Service tax credit on input services used in manufacturing goods on a job-work basis was treated as admissible where the settled Tribunal position recognised entitlement for a job worker clearing goods to the principal manufacturer under Notification No. 214/86-CE. The Tribunal relied on the Larger Bench ruling in Sterlite Industries and its earlier orders in the same matter and in Laakoonaa Reactions, and on that basis set aside the impugned order. Consequential relief followed for the appellant.

---

---

Issues: Whether credit of service tax paid on services used in the manufacture of goods on job work basis was admissible to the appellant.

Analysis: The dispute was treated as settled by the Larger Bench decision in Sterlite Industries and by the Tribunal's own earlier orders in the appellant's case and in Laakoonaa Reactions. The Tribunal applied the settled position that duty paid on input services is available to a job worker clearing goods to the principal manufacturer under Notification No. 214/86-CE.

Conclusion: The credit was held admissible and the impugned order was set aside in favour of the appellant.

Final Conclusion: The appeal succeeded and the appellant was granted consequential relief.

Ratio Decidendi: Credit relating to services used in job-work manufacture is admissible where the settled Tribunal position recognizes entitlement to such benefit for a job worker clearing goods under Notification No. 214/86-CE.

---