Refund of CENVAT when company wound up?

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This query is : Resolved

CA. Arul Mozhi Varman (Querist)

25 August 2010 Case - I
A company has a CENVAT Credit of Rs. 10 lacs. Due to consistent loss, the management has decided to wind up the company. Whether the company can avail the refund of CENVAT Credit of Rs.10 lacs ?

Case - II
A company has a CENVAT Credit of Rs. 10 lacs and the Company has an unfulfilled Export obligation (Duty along with interest worth of Rs. 10 lacs)for which the date has expired.Due to consistent loss, the management has decided to close down the operations of the company. Whether the company can set off the Unavailed CENVAT Credit of Rs. 10 lacs with the Duty of Rs. 10 lacs for unfulfilled export obligation ?

Thanks in advance.
Arul.

Manish wadhwa

Manish wadhwa (Expert)

26 August 2010 Case-I:the answer to the first query is no the company cannot avail the refund.
Case-II:The company cannot set off the the unavailed cenvat credit against the unfulfilled export obligation however the credit can be utilized if the goods which could not be exported are cleared for home consumption.Hope this answers your query.

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