Accumalation Central Excise Credit

[jagadesh kumar bhojanapalli Kumar]

The Unit has been registered under Central Excise , importing inputs from overseas supplier availing cenvat credit including CVD , no exports made from that unit but clearances were made to EOUs against form CT-3. Pl suggest us how to claim accumulated excise credits & authority or notication/circular Regards,

[Mahir S]

(i) From your query, it is clear that goods are cleared to Export Oriented Units. Hence, Refund for such exports can be claimed under Rule 5 of Cenvat Credit Rules, 2004. as clearances to EOU. is considered Deemed Export . Also refer Noti.No.05/2006 CE (N.T.).

(ii)  Secondly, if there are more than one unit registered on the common PAN number , then you can Transfer the Cenvat credit of additional duty to such unit - Refer rule 10 A of Cenvat Credit Rules, 2004.

(iii) Imported inputs can also be cleared as such under sub rule (5) of rule 3 of Cenvat Credit Rules, 2004 on payment of an amount equal to the credit availed in respect of such imported inputs.

In above ways, the accumulated cenvat credit can be reduced.

[YAGAY andSUN]

We are in agreement with the reply submitted by Mr. Naveed.

Keep it up Naveed 

[Mahir S]

Thanks a lot.. 

AI Summary

Accumulated Cenvat Credit: options include refund for deemed exports, transfer to related units, or clearance on payment. Accumulated Cenvat credit from imported inputs (including additional duty/CVD) can be reduced by claiming a refund for clearances treated as deemed exports to EOUs, by transferring additional-duty credit between units registered on the same PAN, or by clearing imported inputs on payment equal to the credit availed, each mechanism extinguishing the accumulated credit.