Excise credit against Service tax liability

[Rudrayani Shedjale]

Hello

we are into works contract business.

we have service tax registration.

we pay service tax on work contract services provided to our clients.

recently we have purchased a machinery for business use on which the supplier has charged us excise.can we take credit of the same against our service tax liability?

please guide.

AI Summary

CENVAT credit on excise paid for machinery can offset service tax liability, subject to abatement and eligibility conditions.
CENVAT credit for excise paid on machinery used in providing taxable works contract services may be availed and adjusted against service tax output liability under the CENVAT Credit Rules. Where an abatement applies (such as certain construction services), credit availability is limited by the abatement framework and by conditions including that input CENVAT has not already been taken and that land value is included in charges.