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

Service Provider Seeks Refund for Unutilized Cenvat Credit Upon Business Closure; Advised to Review Rule 5, 2004. A service provider inquired about the possibility of obtaining a refund for accumulated Cenvat Credit upon closing their business and surrendering their registration. An indirect tax consultant advised reviewing Rule 5 of the Cenvat Credit Rules, 2004, which addresses unutilized credit related to service tax due to service exports. The consultant suggested that the service provider consult with a Commissioner or Deputy Commissioner and submit a formal request to the relevant authority to explore any specific provisions or procedures applicable to refunds due to business closure.