Custom, Excise & Service Tax TribunalM/S. Fiem Industries Limited vs Cce, Chennai Iii on 11 May, 2012IN THE CUSTOMS, EXCISE & SERVICE TAX
APPELLATE TRIBUNAL
SOUTH ZONAL BENCH AT CHENNAI

E/S/64 to 66/2012 and E/142 to 144/2012

(Arising out of Order-in-Original No. 57/2011 dated 28.10.2011 passed by the Commissioner of Central Excise, Chennai)

M/s. Fiem Industries Limited 					Appellants


     Vs.


CCE, Chennai  III 						RespondentAppearance

Shri V. Panchanathan, Advocate for the Appellants
Ms. Indira Sisupal, JDR for the Respondent

CORAM

Honble Dr. Chittaranjan Satapathy, Technical Member 

              Date of Hearing:   11.05.2012 
              Date of Decision:  11.05.2012

Stay Order Nos. _____________
Final Order Nos.  ____________

	Heard both sides.2.	The issue involved in these appeals is whether the appellants are eligible to take credit of service tax paid on different services for the purpose of paying duty in respect of various goods manufactured by them. A batch of twenty appeals have been decided by this Bench remanding the cases to the original authority with the following observation on 28.10.2011 in the case of CST, Chennai Vs. M/s. Murugappa Management Services Ltd. & Others in Final Order Nos. 1170  1189/2011:-4.		Though the order of the Honble Bombay High Court in the case of Ultratech Cement (supra) has not taken note of the provisions ofSection 37(2)of the Central Excise Act, 1944 limiting the rule making power to grant of credit in respect of tax paid on services used in or in relation to the manufacture of final excisable goods, in the absence of a stay order obtained against the same and in the absence of any contrary decisions either by the Honble jurisdictional High Court of Madras or the Honble Supreme Court, the order of the Honble 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. However, since this order of the Honble Bombay High Court was not before the authorities below when they decided the present cases, I set aside the impugned orders in respect of all these appeals and remand the matter to the respective original authorities for fresh decision applying the ratio laid down in the said order of the Honble Bombay High Court in the case of Ultratech Cement (supra).5.		All these 20 appeals are thus allowed by way of remand in the above terms. It goes without saying that this order is subject to the outcome of the decision of the Honble jurisdictional Madras High Court in the cases filed against the order of this Bench in the case of Sundaram Brake Linings (supra). The parties to these appeals will be at liberty to approach this Tribunal for further orders, if required, as a result of the outcome of the final order of the Honble Madras High court.3.	Following the ratio of the above decision of the Tribunal, the impugned orders in these cases are also set aside and the matter is remanded for fresh decision to the original authority (jurisdictional DC/AC) on the very same terms.4.	The stay petitions filed by the appellant also stand disposed of. 
(Dictated and pronounced in open court)



										                
			                		(Dr. Chittaranjan Satapathy)
        						               Technical Member 
Rex