Dear Mr. Pradeep & Mr. Sahil, in works contract, abatement concept has been dispensed with from 1st July'12( which used to prevail in the form of works contract composition scheme).
W.e.f. 1st July'12, the valuation of works contract has been determined in the rule 2A of Service Tax(determination of value) Rules,2006 itself...which clearly states that CENVAT of only inputs is denied.
It nowhere denies the CENVAT of input services.
Henceforth, works contarct is not dealt by any abatement scheme, the same is being taken care in valuation rule itself.
Please refer N/N 24/2012-ST dated 24-Jun-12 for removal of doubts.