Refund of unutilized cenvat credit

[Vikash Kumar]

We want to file a refund of unutilized Cenvat credit under Rule 5 of cenvat credit rules and Notification no. 18/2012(N.T.) dated: 17/03/2012 but under rule 5 (2) of the said notification it is mentioned that no refund of credit shall be allowed under the customs & central excise duties and service tax drawback rules, 1995 or claims rebate of duty under central excise rules, 2002 in respect of such duty; or claims rebate of service tax under the export of service tax rules, 2005 in respect of such tax.

We are receiving 1.9% of duty drawback as per All India rates of duty drawback after export. So whether we are entitled for the refund of unutilized cenvat credit? Seeking your expert opinion.

[Rajagopalan Ranganathan]

Sir,

If you claim duty draw back only in respect of customs portion and you do not claim draw back in respect of central excise portion then you are eligible to claim refund of unutilized cenvat credit vide CBEC Circular No. 83/2000-Cus dated 16.10.2000.

[Vikash Kumar]

Thank You Sir. Appreciate your feedback.

[CSSANJAY MALHOTRA]

Dear Vikash,

Endorsing the views given by Sh. Rajagopalan.

Please do note that the Drawback rates in most of the cases remain same i.e. "WHEN CENVAT FACILITY IS AVAILED" AND "WHEN NO CENVAT FACILITY IS AVAILED". The same rate represents Drawback in respect of Custom Portion only. If your case happens to fall in above category, then you are eligible for claiming refund of unutilised accumulated CENVAT Credit due to Exports.

AI Summary

Refund of unutilized Cenvat credit available where duty drawback is claimed only for the customs portion, not the excise portion. Refund of unutilized Cenvat credit is barred when drawback or rebate has been claimed for the same duty/tax; eligibility exists only if drawback or rebate was claimed exclusively for the customs portion and not for the central excise/service tax portion. Where All-India drawback rates represent the customs component alone and no excise/service rebate has been availed, the exporter may claim refund of accumulated unutilized Cenvat credit.