Refund of Service tax in case of export without opting registration

[satbir singhwahi]

inview of the  notification no. 5/2006 for refund of cenvat credit dt 14.03.2006. kindly clarify whether export unit exporting garments and not registered with excise dept can cliam refund of service tax. Also clarify whether full drawback will be possible or not.

[Surender Gupta]

An export unit can claim the refund of Cenvat Credit corressponding to Service tax. Drawback in my opinion is consisting of two parts, excise and custom duty. Therefore refund of Cenvat Credit equal to service tax should not have any impact on duty drawback. Further, there is no clear guidlines are available for obtaining registration for the purpose of refund of Cenvat credit. In this regard you may contact the conerned office of Central Excise.

AI Summary

Refund of Cenvat Credit: exporters without excise registration may claim service tax credit refund; drawback unaffected. An export unit without excise registration may claim refund of the portion of Cenvat Credit attributable to service tax; procedural eligibility and registration guidance for such refunds are not clearly provided. A refund of cenvat credit corresponding to service tax is not expected to affect Duty Drawback, since drawback comprises separate excise and customs components, but exporters should obtain procedural clarification from the concerned excise office before claiming.