Cenvat Credit Utilization

[Sharad Sonawane]

Dear Experts

we have manufacturing unit got accumulated credit since  unit is supplying goods only to EOU.  Whether, any refund can be obtained on such duty paid amount?

[Rajesh Nathoo]

Dear Mr. Sharad,

 U can claim refund as per Rule 5 of Cenvat Credit Rules, 2004 . Though , it is only for Export . Sale to EOU is a deemed export . Refund  has been held admissible by Tribunal  in all judgements . - Elecomponics Sales v. C.C.E. 2011 (10) TMI 196 - CESTAT, NEW DELHI= (2012) 279 ELT 280 ( CESTAT SMB ).

AI Summary

Cenvat credit refund: deemed export supplies to EOUs permit refund claims for accumulated unutilised credit under Cenvat rules.
Supply of goods to an Export Oriented Unit is treated as a deemed export, and accumulated Cenvat credit arising from exclusive supplies to an EOU can be claimed as a refund under the Cenvat Credit Rules; tribunal precedents have allowed refund claims in such circumstances, permitting exporters supplying EOUs to seek reimbursement of unutilised input/service credits in line with the procedural rules.