Claim of refund of cenvat

[madhavvan n]

a company regd with excise sells its products locally as well as sells to sez and traders who then export the product can the company claim refund of cenvat readers pls give yr views

[Dinesh Gupta]

Supply to SEZ is treated as export and therefore, the unit may utilize the credit for payment of excise duty on DTA sale or claim refund under rule 5 of the Cenvat Credit Rules, 2004. Where the goods are supplied to traders, the further course of action would be determining factor to decide the refund provisions. If the export by the trader is being made in the name of manufacturer being supporting manufacturer, the company can claim refund of cenvat credit.

AI Summary

Cenvat credit refund: supply to SEZ treated as export allowing credit use or refund; trader exports require manufacturer-named export. Supply to a Special Economic Zone is treated as export, allowing the manufacturer to utilise cenvat credit for DTA sales or claim refund; supplies to traders permit refund only if the export is effected in the manufacturer's name as the supporting manufacturer, otherwise refund entitlement depends on the export arrangement.