Refund of unavailed CENVAT Credit

[Sanjay Mungee]

Dear Team Members,

Very good Morning & have a great day to all.

We are a Civil Construction industry using Cement & Steel in large quantities for our various ongoing Govt as well as private projects.

Being end product free of Excise duty, we are neither able to avail CENVAT Credit nor get refund of same.

Can any member, please guide us, how the refund of unavailed CENVAT Credit can be obtained ?

Same is the case for Service Tax also.

Can we get refund of Service Tax also along with CENVAT credit ?

If Yes, can you please guide me with notifications or previous case ? If No, why ? under which notification ?

Await for prompt responses from group members.

Thanks,

Sanjay Mungee

[Rajagopalan Ranganathan]

Sir,

According to rule 5 of CENVAT Credit Rules, 2004, a manufacturer who clears a final product or an intermediate product for export without payment of duty under bond or letter of undertaking, or a service provider who provides an output service which is exported without payment of service tax, shall be allowed refund of CENVAT credit. In other cases there will be no refund of un-utilized cenvat credit.

AI Summary

Refund of CENVAT credit allowed for exports under bond or letter of undertaking; otherwise no refund for unutilized credit.
Refund of unavailed CENVAT credit is permitted when goods are exported under bond or letter of undertaking or when output services are exported without payment of service tax, enabling refund of accumulated CENVAT; in other cases, including domestic clearances or supplies on which duty/service tax is paid, no refund of unutilized CENVAT credit is available.