Cenvat Refund

[JAGANATHAN KUMARAVEL]

Can a manufacturer avail the refund benefit under Rule 5, if he has imported some of the parts of export goods under Advance Licence and also procured locally major items on payment of central excise duty. . Can the manufacturer claim the refund for items procured in India by payment of Excise Duty and used in the exported goods

[MUKUND THAKKAR]

Sir,

if your export is high compare to domestic sales in such situation you have to balance in cenvat account than file refund claim of unutilized cenvat credit balance under rule 5.

AI Summary

Cenvat refund: balance CENVAT account and claim unutilised credit under Rule 5 when exports exceed domestic sales.
Where exports exceed domestic sales, the manufacturer must balance the CENVAT account and may file a refund claim for the unutilised CENVAT credit balance under Rule 5; locally procured inputs on which excise duty was paid can give rise to a refundable unutilised CENVAT credit when reconciled accordingly.