<h1>CBEC Clarifies Cenvat Credit: No Excise Credit for Works Contracts with VAT; No Reclassification After 01.06.07.</h1> The Central Board of Excise and Customs (CBEC) issued an amended circular clarifying Cenvat Credit issues for works contract services. It stated that service providers cannot claim credit for excise duty on goods involved in works contracts subject to VAT/sales tax. Additionally, service providers cannot reclassify services to the works contract category for tax payments post-01.06.07 under the Composition Scheme. This is because service classification is based on the nature of service, not payment timing. Therefore, providers who paid service tax before 01.06.07 cannot change service classification for tax purposes after this date.