Refund of accumulated credit to a Service provider on closure of business / surrender of Registration

[Vinay Kunte]

Is the Refund of balance / accumulated Cenvat Credit available to a Service Provider if decides to close the business and surrender the registration?

If yes, what is the procedure?

[YAGAY andSUN]

Dear Vinay,

 Please check Rule 5 of the Cenvat Credit Rules, 2004.

Regards,

Team YAGAY & SUN

(Indirect Tax Consultants)

[Vinay Kunte]

Rule 5 of C.C.R. 2004, speaks of the unutilized credit of Service Tax accumulated due to export of service, towards payment of Service tax on outward Services or payment of Excise Duty on Goods. But, it also stipulates certain conditions as may be notified by the Govt.

Are there any procedures / conditions laid down vide any Circular / Notification in this respect?

Also please note that the Refund is required due to closure of business. Is there any specific provision for that?

[YAGAY andSUN]

Dear Vinay,

Please meet with Commissioner/Deputy Commissioner or Asstt. Commissioner in this regard and submit a write-up to the concerned authority.

Regards,

Team YAGAY & SUN

(INDIRECT TAX CONSULTANTS)

AI Summary

Refund of Cenvat credit may be available on business closure subject to notified conditions and administrative submission to tax authorities. Refund of accumulated Cenvat credit on business closure or registration surrender falls under Rule 5 of the Cenvat Credit Rules, 2004, which permits utilisation of unutilised credit subject to conditions and notifications; the document records no specific circularised procedure, and advises approach to the appropriate tax officer with a written submission to seek administrative processing.