Transport service abatement applies to contract carriage, radio taxi and stage carriage where no CENVAT credit is claimed.

Transport of passengers by a contract carriage (other than motor cab), radio taxi and stage carriage is subject to an abated valuation resulting in an effective service tax incidence where the condition for this treatment is that CENVAT credit on inputs, capital goods and input services used for the taxable service has not been claimed under the CENVAT Credit Rules, 2004; "stage carriage" adopts the Motor Vehicles Act definition.

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