Refund of TTA

[deepak kalambate]

We are Textile goods manufacturer Exporter working under 29/2004 CE & are taking cenvat credit on both inputs and input services.

We now would like to opt ZERO duty option in next financial year for that we have utilized all Cenvat credit of Inputs & Input Services and now we have ZERO closing balance of Inputs and Input Services EXCEPT balance of TTA

Please let us know whether we can claim this duty or can set off against our Central Excise Liability?

Thanks & Regards,

Deepak

[YAGAY and SUN]

Dear Deepak,

Please check the clause 3 C (VII) of the Notification No. 12/2005-C.E. (N.T.) and 27/2007-C.E. (N.T.)  i.e. CENVAT Credit (Sixth Amendment) Rules, 2007 in this regard.

Regards,

Team YAGAY & SUN

(Indirect Tax Consultants)

AI Summary

Cenvat credit balance treatment requires reference to notification provisions when opting for the zero duty option.
A textile manufacturer-exporter asks whether a remaining TTA Cenvat credit balance can be claimed as a refund or set off against Central Excise liability when opting for the zero duty option; the reply directs consultation of clause 3C(vii) of Notification No. 12/2005-C.E. (N.T.) and Notification No. 27/2007-C.E. (N.T.) under the CENVAT Credit (Sixth Amendment) Rules, 2007 for applicable eligibility and procedural rules.