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

Cenvat credit entitlement allows exporters paying service tax to claim refund of unutilized credits under prescribed procedure. Exporters who paid service tax on input services used for export can avail cenvat credit on inputs and input services and, if such credit remains unutilized, claim refund of the unutilized cenvat credit from the department by following the prescribed procedural requirements and documentation.