Eligibility of refund to the service receiver

[VINOD KUMAR]

Dear sirs. Xyz ltd. is having huge amount of cenvat credit accumulated in his credit due to supply of goods under notification no. 12/2012-ce sl. no 338/336. He is receiving wct, mra, and cab services and paying ST undef reverse charge. He is also providing some output services as a service provider. My queries are:-1. is he eligible for refund of service tax paid by him under reverse charge on wct, mra and cab as a service receiver. 2. Is he eligible for refund of inputs under rule 5 of CCR 2004 on the supply to mega power project under sl. No. 336and 338 of notification no. 12/2012-ce. All these supplies has been treated as deemed export. 3. Any other way under indirect taxlaws/FTP which he can use to cash his cenvat credit. The manufacturer is having cenvat credit of more than ₹ 5 crores as 80% supply is deemed export. Further, he has no export out of india. Please reply. Thanks and regards for your valuable suggestion.

[Madhukar N Hiregange]

The option of procurement under advance license and application for refund under rule 5 regularly could bring this accumulation down.

AI Summary

Xyz Ltd. seeks refund of service tax paid under reverse charge and inputs under Rule 5 of CCR 2004. A service receiver, referred to as Xyz Ltd., has accumulated a significant amount of CENVAT credit due to supplying goods under a specific notification. The company inquires about eligibility for a refund of service tax paid under reverse charge on certain services and a refund of inputs under Rule 5 of CCR 2004 for supplies treated as deemed exports. They also seek advice on other methods to utilize their CENVAT credit, which exceeds 5 crores. A response suggests using procurement under an advance license and applying for refunds under Rule 5 to reduce the credit accumulation.