Refund of Accumulated Cenvat Credit

[Samir Banerjee]

We have a client (manufacturer of CFL and LED lights) located at Uttarakhand. As per state development policy, the client enjoying exemption from payment of Central Excise. Whereas, while procuring inputs including capital goods from outside Uttarakhand they are liable to pay Excise Duty, which they are unable to utilize with the result it is amounting to cost for them. Is there any prescribed process under any rule whereby they can get the amount of un-utilized Cenvat?

AI Summary

Manufacturer's Cenvat Credit Refund Only Possible for Exports, Not Domestic Sales of Exempt Goods Under Rule 5 CCR 2004. A client, a manufacturer of CFL and LED lights in Uttarakhand, benefits from a Central Excise exemption under state policy. However, they incur excise duty on inputs from outside the state, which adds to their costs as they cannot utilize the Cenvat credit. A query was raised about obtaining a refund for this unutilized credit. The response clarified that refunds are possible under Rule 5 of CCR 2004 for physical exports, regardless of excise status. For domestic sales of exempt goods, Cenvat credit on inputs is unavailable, so no refund is applicable for unutilized credit.