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?

AI Summary

Manufacturing unit supplying to EOU can claim Cenvat credit refund under Rule 5, deemed exports confirmed by Tribunal. A manufacturing unit with accumulated Cenvat credit due to supplying goods exclusively to an Export Oriented Unit (EOU) inquired about the possibility of obtaining a refund on the duty paid. An expert responded that a refund can be claimed under Rule 5 of the Cenvat Credit Rules, 2004, as sales to an EOU are considered deemed exports. The Tribunal has consistently upheld the admissibility of such refunds in various judgments, including the case of Elecomponics Sales v. C.C.E.