Rebate Claim for Deemed Export under Rule 5 of the CCR 2004

[Chetan Pawar]

Dear Sir,

Thanks for the below very useful Information.

I would like to ask, we are the Oil filed chemicals manufacturer  & supply the same  in Rajasthan under International Competitive Bidding under Central Excise Notification No.12/2012 Dt.17.03.2012 (Sr.no.336), due to this we had accumulated Cenvat Credit, can we get the rebate from Excise under rule 5 of the CCR 2004.

Please explain with all legal aspects

Regards,

Chetan Pawar

[YAGAY andSUN]

Dear Chetan,

Please check whether you come under the purview of Rule 6 of the CENVAT credit Rules, 2004 for reversal of proportionate CENVAT credit on removal of exempted goods.

Further, after reversal of CENVAT credit, if any amount remain accumulated then you may get the refund from the Revenue Department.

Regards,

Team YAGAY & SUN

(Indirect Tax Consultants)

[Mahir S]

Sir,

Is proportionate reversal of credit required in terms of rule 6 of cenvat credit rules, 2004, when indigenous inputs are used in relation to manufacture and supply under International Competitive Bidding.

AI Summary

Deemed export rebate: proportionate reversal of Cenvat credit may be required before refund eligibility. Claim for rebate under Rule 5 for supplies as deemed exports depends on treatment of accumulated Cenvat credit: suppliers must assess applicability of proportionate reversal of Cenvat credit required for removal of exempted goods under Rule 6, and after reversing any proportionate credit any remaining accumulated credit may be eligible for refund under the rebate framework for deemed exports.