CENVAT FACILITY ON INPUT MATERIAL

[DINESH DAVE]

Dear Sir,

We are supplying material against Annexure 45. In this case party is not EOU but we are supplying material without excise duty because of ANNEXURE 45. I have purchase raw material to manufacture the goods and take cenvat credit in my cenvat account but due to annexure 45 i my excise duty is still credit.

In this case my cenvat account is going credit & credit. So is there any way to purchase without duty material for manufacture the goods.

[YAGAY andSUN]

Dear Dinesh,

As we correctly understand your query, you are talking about accumulation of CENVAT credit on the Inputs used in manufacturing of finished goods. The finished goods are being removed on the strength of Annexure 45.

In this matter you may approach to the Department and seek clarification that whether you may avail the benefit of Deemed Export as finished goods removed by you are being used by your customer for export out of India.

Regards

Team YAGAY & SUN

(Indirect Tax Consultants)

AI Summary

CENVAT credit accumulation on duty free removals may require deemed export clarification for retention or refund. Accumulation of CENVAT credit arises when inputs are credited but finished goods are removed duty-free under Annexure 45; whether the credit may be retained, refunded or required to be reversed depends on whether the supply qualifies as a deemed export or falls under a specific exemption. The practical step is to obtain departmental clarification on eligibility for deemed export treatment and the documentation and procedures for credit retention or refund.