Refund of Unavailed Cenvat under rule 5 and Electronic Refund of Service Tax on Outward Services

[Ashok Chopra]

Respected Forum,

I am 100% EOU and availing refund on Unutilized Cenvat under Rule, 5 and i am also availing Electronic Refund of Service Tax  in my Shipping Bill and is being credited in my bank account.

 As per recent amendment in Rule 5 that unit who is availing rebate of Service Tax is not entitle for Unutilized Cenvat under Rule, 5.

Pls guide me:-

1.  Whether this clause is applicable on me and i am not entitled for Unutilized Cenvat under Rule, 5?

2. I am interested in Unutilized Cenvat, should i immediately stop taking Service Tax Rebate?

3. What should i do with the Service Tax Rebate, which has already been credited in my bank account, but still i have not utilized that rebate?

With regards

Ashok Chopra

AI Summary

100% EOU Seeks Clarity on Rule 5 Amendment Affecting Service Tax Rebates and Unutilized Cenvat Refunds Eligibility A participant operating a 100% Export Oriented Unit (EOU) seeks guidance on the implications of a recent amendment to Rule 5, which states that units availing service tax rebates are not entitled to unutilized Cenvat refunds. The participant is currently receiving electronic refunds of service tax and is concerned about whether they should stop claiming these rebates to remain eligible for unutilized Cenvat. They also inquire about handling service tax rebates already credited to their account but not yet utilized. Another participant questioned if the query pertains to a 100% EOU, which was confirmed.