Refund under Rule 5

[Rudrayani Shedjale]

Hello

if we want to claim under rule 5 of CCR for refund of accumulated cenvat credit, i do we have to maintain the excess balance in our cenvat account through out the quarter??

i mean if we are claiming for 10laks & on the date of claiming we have the balance of 15 laks but on the 1st day of quarter if we are having balance of 9laks are we eligible for refund??

please guide.

[CSSANJAY MALHOTRA]

Dear Rudrayani,

If you are filing the Refund claim say for ₹ 10 Lacs for a particular quarter, the same means that the accumulated CENVAT Credit at the end of that particular quarter should be minimum or equal to ₹ 10 Lacs.

The same should be maintained until and unless the refund is claimed from the department or alternatively, CENVAT refund should be debited at the time of filing application.

[DR.MARIAPPAN GOVINDARAJAN]

Thanks for the useful information.

[Rudrayani Shedjale]

Dear Sir

Thanks for the information.

[PARTHASARATHY V]

Hello,

If you wish to claim refund under Rule 5 of CCR 2004, Exports should be made under LUT (without payment of duty). The Refund will be calculated on the following basis

Refund amount=		(Export turnover of goods + Services)				x Net Cenvat Credit
		TOTAL TURNOVER

The calculated amount to be debited to the Cenvat Creidt Register (Cenvat or Service Tax) and Form R should be filed in duplicate with relevant details of debit made, export made, value of export goods etc.

This is the procedure to claim the Refund under Rule 5

AI Summary

Refund under Rule 5 requires maintained accumulated CENVAT credit or immediate debit and exports under LUT with Form R filing. Refund under Rule 5 requires that the amount claimed be backed by at least an equal accumulated CENVAT credit balance at quarter-end and that this balance be maintained until claim or be debited at filing. Exports must be under a Letter of Undertaking without duty. Refund is calculated by applying export turnover (goods and services) over total turnover to net CENVAT credit; the resulting amount is debited in the CENVAT Credit Register and filed via Form R with supporting details.