Service tax refund

[kiran pai]

We are a manufacturer exporter of textile products having centralised registration of service tax in Mumbai. So far we had not taken any input credit of service tax. We are not an assessee of central excise. We are exporting fabric from Mumbai and garments from Bangalore. Can we apply for the service tax refund on which we are paying the service tax for we have availing the services from the provider for the help of export of our products. Please give me suggestion.

[Rama Krishana]

Yes, since you are exporting the textile products, you not paying duty of excise, but otherwise these goods are subject to excise. There may be some exemption for the products for domestic clearance, but you can avail the cenvat credit on inputs and input services and claim the refund of unutilized cenvat credit from the department as per the prescribed procedure.

AI Summary

Textile Exporter Eligible for Service Tax Refund on Unutilized CENVAT Credit for Exported Goods Under Prescribed Procedures A manufacturer exporter of textile products with centralized service tax registration in Mumbai inquired about eligibility for a service tax refund, having not previously claimed input credit. They export fabric from Mumbai and garments from Bangalore and seek guidance on claiming refunds for service taxes paid on services aiding exports. The response confirmed eligibility for a refund of unutilized CENVAT credit, as the goods are subject to excise but exempt for export. The exporter can claim this refund by following the prescribed procedure.