Dear Sir,
We are running EOU unit manufacturing Electronic Coils and Transformers at Chennai.
We need following clarification from you. Please do the needful.
1.We are having surplus credit in our book, please advise can we adjust this credit against the service tax payable as Recipient.
2. Can we get refund of this excess credit (Both Excise and Service Tax) from central Excise department.
Regards
Abdulrazack Basha
9941901251
Business Queries on Surplus Service Tax Credit: Cash Payment Required, Refund Possible Per CENVAT Credit Rules, 2004 A business operating an Export Oriented Unit (EOU) in Chennai sought advice on handling surplus credit related to service tax under the reverse charge mechanism. The queries were whether this credit could be adjusted against service tax payable as a recipient and if a refund of excess credit could be obtained from the central excise department. Responses clarified that service tax under reverse charge must be paid in cash and not through CENVAT credit adjustment. However, a refund of input and input services used in manufacturing exported goods can be claimed according to CENVAT Credit Rules, 2004. (AI Summary)
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