Whether the balance in CENVAT service tax account is refundable if we close the company? if yes, is there any time limit applicable and what is the procedure to be followed.
The company was carrying on domestic business and not an STPI or EOU unit.
Thanks
Ajith
Company Queries CENVAT Credit Refund on Closure; Experts Cite Rule 3(4)(e) and Case Law, Recommend Utilization Before Closure. A discussion on a forum involves a company inquiring about the refund of the CENVAT service tax balance upon closure. Responses vary: one expert states that the credit balance will lapse and is not refundable, while another references a case allowing refunds of unutilized credits upon closure. Others argue that cash refunds are generally not permissible except in export cases, citing Rule 3(4)(e) of the Cenvat Credit Rules. Despite differing opinions and case law references, the consensus leans towards utilizing credits before closure to avoid loss, as litigation outcomes are uncertain. (AI Summary)
TaxTMI 
TaxTMI 
