CENVAT CREDIT ON INPUT SERVICES UNDER 100% RCM

[Asked by Guest]

Dear sir

1. We are manufacturer of exempted goods under excise duty (yarn, fabric and madeups).

2. we are exporting only madeups to foreign countries, where we claim the duty drawback

3. we sold yarn and fabrics within the country. here we cannot claim the dutydrawback

my question is "can we claim the cenvat credit on input RCM service for the goods

a) sold within the country

b) sold outside the country

AI Summary

Cenvat credit on reverse charge input services governed by end use; refund or drawback prevents double benefit.
Cenvat credit on input services paid under the reverse charge mechanism may be availed for domestic clearances of taxable goods subject to Cenvat Credit Rules, but is not available where the final product is exempt; exporters should seek relief through refund or duty drawback mechanisms rather than claiming both cenvat credit and drawback, and entitlement to refund or drawback for RCM-paid services is governed by specific refund provisions and notifications.