Unutilised Cenvat Credti

[Asked by Guest]

Dear Sir,

For one our unit we had taken Excise Registration for manufacture and service tax registration for payment of Service tax under reverse charge mechanism, after few years we had stopped the manufacture and started job work under notification-214/86 for our other units so we don't charge any service tax for said job work. During this period we availed few services like GTA, labor supplies and security and we paid service tax on that under RCM and take Cenvat credit also, At present we had stopped the job work and all the machinery we transferred to our other unit through sales invoice and paid the duty. Now we don't have any operating activity but we regularly filling the ER-1, ER-6 & ST-3 on time. We have a credit Balance in Cenvat Credit. Audit also pending from long time.

So my question is

1) Whether Input Service tax credit is illegible during the job work period as we are doing job work under 214/86.

2) What about our Credit Balance of Cenvat Credit whether we are illegible for Refund or not ?

3) Can we file for surrender of Registration certificate as our Audit is pending for a long period ?

4) Can we close this premises as our products which we are sales at the time of manufacture it is under warranty period up to the 2017.

Regards

Swapneswar

AI Summary

Cenvat credit availability during job work depends on whether goods are cleared without duty and proof of duty paid inputs.
Input service tax credit is not available when job worked goods are cleared without payment of duty; credit arises only if the goods are treated as manufactured and duty on inputs, capital goods or input services has been paid. Unutilised Cenvat credit is refundable under the Cenvat Credit Rules only if it represents duty paid on inputs used in goods ultimately exported; otherwise it lapses. Registration surrender is permissible despite pending audit, and an inactive premises may be closed even while products remain under warranty.