Dear Professionals,
Can you any one help me on the below:
We have two divisions in our company. Division–A importing raw materials from outside India by way of paying import duties, manufacturing and selling within India, while importing raw materials we are paying Basic Customs duty, CVD, ACD and other applicable cess and we are availing the eligible CENVAT Credit. After manufacturing, the final product will fall under the same % of Excise duty which we have paid as CVD while import of raw materials, this we are adjusting through CENVAT credit, But we could not use the 4% of ACD we are paying while import and its getting accumulated over a period of time, now we have sizeable amount of CENVAT Credit in our books. Division-B importing raw materials from outside India (from one of our sister concern) by way of using Advance License and assembling the same and re-exporting to outside India (to our sister concern) by using the Advance License. Now my question,
- Is there any possibility for Division –B can utilize the Advance license for only import of raw materials and for export of the same can use the CENVAT Credit by the way of PAID EXPORT and we can get back the refund from Excise department for the paid export?. OR
- We can get refund for the unutilized amount of CENVAT Credit in any other mode?.
Please advise.
Thanks & Regards,
R.Suthakar.
CAclubindia
