service tax set off against civil contstruction

[Asked by Guest]

we are manufacturer of excisable goods. we have received purchase order under works contracts for Civil Construction works. we have completed civil construction works through another vendor. we have received Civil Construction bill with charging service tax.

Can we utilize this service tax amount against payment of excise duty?

AI Summary

Cenvat credit ineligibility: service tax on civil construction not usable against excise as not linked to manufacture.
Service tax paid on works contract or civil construction executed by a third party is not available as Cenvat credit against excise duty because such services were not used "in or in relation to" manufacture and clearance of final products; the definition of input service under the Cenvat Credit Rules excludes setting up of a factory and standalone civil construction, so service tax on those works is ineligible for credit.