Cenvat credit utilisation

If you are using excise input purchases are used to provide output services you can use excise credit to pay your service tax liability

Input as defined under rule 2 (k) of Cenvat Credit Rules 2004 as " (iv) all goods used for providng any output service". So input used for providing outpur service is eligible for CENVAT Credit.

under Scheme of CENVAT Credit, the person who is liable to service Tax  on service provided to him (output service) can setoff this liability by claiming credit for the amount duties and cess he has paid on the goods (input goods as well as capital goods) he used and also the amount of service Tax and cess he has paid on the service he used (Input service) to provide such taxable service.