Service tax refund

This query is : Resolved

CA DHARMENDER KUMAR (Querist)

25 May 2016 One our client has much input since 2011-12 to 2015-16, for which refund is required to claimed...
can any body help us regarding the procedure to be followed for claiming the refund and documentation required...

Suresh Ramaswamy

Suresh Ramaswamy (Expert)

25 May 2016 There is no provision for refund of CENVAT Credit availed, except in case of CENVAT credit on Input services utilized for Export of Services. . There is time limit for which the balance of credit can be carried forward, provided the assessee continues to render output services. However, in case, there is any e-payment of service tax, the same can be asked as refund, provided CENVAT Credit availed was available and used to pay off the output service tax liability.

The application for refund of duty should be filed in Form - R within one year of payment of duty. Be forewarned that it is almost next to impossible to get refund from Central Excise Department. The Duty should not have been passed on to the service recipient, and if so passed on, the same should be refunded through bank to the service recipient. In case the service has been rendered and the invoice issued, then it is treated that the incidence of duty has been passed on to the service recipient and the same will not be refundable.

I hope you have been bringing forward the unutilized balance of CENVAT Credit from year to year. In that case the same can be utilized to pay off current output liabilities, except Reverse Charge Payments and Swatch Bharat Cess, In case the balances have not been brought forward from Return to Return, it will be difficult to now utilize the old unavailed credits.

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