Cenvat abatement- service tax - urgent

I believe that you can claim CENVAT credit.

CENVAT Credit is not available to the party providing taxable service who has claimed abatement

4.12% means you are availing abatement, and under abatement input credit is not allowed.

You are a manufacturer of goods subjected to MRP based valuation. You have input service the provider of which avails abatement. Doubt is whether cenvat credit can be taken on the input service . Yes, if it is within the scope of input service . Abatement claimed by the inut service provider is not a bar on your credit.

Dear Mr.Unnikrishnan,

We are the manufacture of pharma products and now the excise duty rate for drug is 5.15%(5*103%) cess 3% and previously it was 4.12%.

Now my question is we are paying now excise duty at  5.15% and because of this the input credit is allowed?

Thanks in advance

You are paying duty as per Noti. No.2/2011-CE wherein there is no prohibition for cenvat credit.

In your case you are eligible to claim all eligible input credits, input service credits as well as capital goods credits.

The fact that you are under  Sec. 4A for valuation nor the fact that the service provider claims abatement and pays ST on abated value would disentitle you for the credits.

Thanks for your reply....

Instead of pharma company, if it is a construction company or travel company would the above said view will differs?