Refund of Cenvat Credit

[Rakesh Chandra]

We are a company registered under Business Auxiliary Services. We receive commission for local services provided in india and services provided abroad i.e export of services. Till date we were claiming 20% of cenvat credit available to pay service tax realised on local commission. Now we had a balance of Rs. 9.0 Lakh in our cenvat credit account. We would like to know wheteher we can claim this cenvat credit as refund from the service tax deptt.

AI Summary

Company Can Claim Refund on Unutilized Cenvat Credit for Exports Under Rule 5 of Cenvat Credit Rules, 2004. A company registered under Business Auxiliary Services inquired about claiming a refund for a Rs. 9.0 lakh balance in their Cenvat credit account. They had been using 20% of the Cenvat credit to pay service tax on local commissions. The response indicated that this method was incorrect, as export services are not equivalent to exempted services. The company can utilize Cenvat credit on input services for exports and apply for a refund of the unutilized balance under Rule 5 of the Cenvat Credit Rules, 2004.