So say I have a creature on the battlefield like {spirit lantern} or {batterskull} and my oppenent plays some sort of removal let's say {oblivion ring} can I pay the required mana to return it to my hand since abilities go on the stack?
Yes you can to avoid the effects
Yes, you can.
That is what the ability us for :)
That's why {Batterskull} is a total douche. Pardon my language, I sincerely HATE that card î–