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Refund under rule 5

Kavita (CA Job) (51 Points)

07 February 2014

We have a huge accumulation of cenvat and planning to apply under rule 5 for refund as export sales is also there. The queries are as below:-

The export turnover on which duty draw back is claimed can also be added to calculate refund .
What is the time period to apply refund.

Thanks

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CA Saroj Kumar (Keen to learn something new every moments) (2588 Points)
Replied 18 February 2014

Dear

Rule 5. Refund of CENVAT credit. -Where any input or input service is used in the manufacture of final product which is cleared for export under bond or letter of undertaking, as the case may be, or used in the intermediate product cleared for export, or used in providing output service which is exported, the CENVAT credit in respect of the input or input service so used shall be allowed to be utilized by the manufacturer or provider of output service towards payment of,

(i)	duty of excise on any final product cleared for home consumption or for export on payment of duty; or
(ii)	service tax on output service,

and where for any reason such adjustment is not possible, the manufacturer or the provider of output service shall be allowed refund of such amount subject to such safeguards, conditions and limitations, as may be specified, by the Central Government, by notification:

Provided that no refund of credit shall be allowed if the manufacturer or provider of output service avails of drawback allowed under the Customs and Central Excise Duties Drawback Rules, 1995, or claims rebate of duty under the Central Excise Rules, 2002, in respect of such duty; or claims rebate of service tax under the Export of Service Rules, 2005 in respect of such tax.

Its clear from the provison of this rule that the Turnover that used in in claiming Duty draw back.

and

Term of rufund claim is generally - Cenvat credit is utilised on Months/Quarter Basis hence the refund also be calimed similarly.

Hope u got clarified

Regards

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