ER1 Return

[Rudrayani Shedjale]

Hello

We filed for refund of accumulated cenvat credit under Rule 5 vide notification no.27/2012-CE(NT) dated 18.06.2012

We received refund in terms of cash as well cenvat credit.

it is clear to me that the amount sanctioned in terms of cenvat credit can be shown in ER1 returns.

But how to show the amount received in terms of cash in the excise returns we file??

because of this our ER1 closing balance & cenvat part II balance don't match.

please advise.

AI Summary

Cenvat refund treatment: credit refunds appear in returns as fresh credit while cash refunds are excluded.
Amounts sanctioned as Cenvat credit must be recorded in the ER1 return as fresh credit earned; cash refunds are not reflected in ER1. At the time of claim the taxpayer reverses the claimed amount from Cenvat Part II, and any credit received thereafter is taken into the Cenvat account and will appear in returns, explaining mismatches between ER1 closing balances and Cenvat Part II balances.