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Excise refund

rahul dedhia (student) (47 Points)

30 May 2014

I am manufaturer who exported good under letter of undertaking. Proof of export is obtained from excise department. Now i want to claim refund of cenvat credit availed on inputs used for mfr of export goods u/r 5 of cenvat credit rules 2004. Can i apply for refund of cenvat credit???

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4 Replies

Sunil Kumar (Indirect Taxation ) (1246 Points)
Replied 30 May 2014

Yes u can apply within one year from relevant date. Rule 11B Any delay in refund more than 3Months eligible to credit ur account with interest @ 6% p.a Rule :11B

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U S Sharma (glidor@gmail.com) (21063 Points)
Replied 30 May 2014

filling of ARE 1 is a major issue, under which scheme you are entitled for refund| if you have to claim the same under rule 5 then you have to establish that the goods are consumed under the exported goods, CA/CE certificates may be asked by the department |

but if you are availing value based exempition for SSI. then it is not possible, in such case you have to maintain the inventry from scratch to finish seperate for both | otherwise export from common stock does not permit for refund.

rahul dedhia (student) (47 Points)
Replied 31 May 2014

Sir, We not avail SSI exemption and we are maintaining accounts in tally erp with INVENTORY. And i removed goods for export under letter of undertaking hence no duty on export goods. Recently i learn that refund of excise duty paid on inputs which used for mfr of export goods is available under rule 5(1) of cenvat credit 2004 rules. For this i have to fill form A and as u rightly said certificate of CA and other documents like ARE copies shipping bill mate receipt etc. My problem is i already submitted all this documets for obtaining proof of export from department. So can still i can file refund application with department u/r 5 of cenvat rules???

JMS (DY.MANAGER -COMMERCIAL) (110 Points)
Replied 31 May 2014

Rahul, Rule 5 of CCR allows refund of Cenvat credit against export transactions. As per rule 5 of CCR, an application is required to be filed on quarterly basis and according to format of table prescribed under rule 5, you will get some portion of credit availed during the quarter after taking into account of export turnover for the quarter. So, whatever eligible credit is ascertained as per the table, you need to reverse the amount in your Cenvat account and then you are allowed to file refund application along with supporting documents of ARE-1 (proof of export) with extract of credit reverse. if you have not availed any credit during the quarter, no refund will be given though export turnover is there.

Regards,

JMS