Refund of accumalated Cenvat Credit

[ashwinbhai shah]

One of our maufacturer is manufacturing Potassium Iodate falling under Ch.28. They are under control of Central Excise and cleared the goods on payment of duty @ 5% under Noti. No. 02/2011-CE. They imported their raw material - Iodine and paying the customs duty and CVD. The rate of CVD is 10% plus ACD @ 4%. The unit is availing the benefit of Cenvat Credit available under Cenvat Credit Rule, 2004. The queation is that the unit is discharged the central excise duty @ 5 % at the time of clearance of finished goods whereas cenvat credit is being taken @ 10% +4%. Hence the unit is having un-utilised balance of cenvat credit in the cenvat credit register. Whether the assessee can file refund claim of unutilised balance of cenvat credit under rule 5 of Cenvat Credit Rule, 2004. Please note that the unit is cleared finished goods for Home consumption only not exported whereas the rules speak about export. Please clirify the point. 

AI Summary

Manufacturer Seeks Refund for Unutilized Cenvat Credit Under Rule 5 Despite Non-Export Status; Alternatives Suggested A manufacturer of Potassium Iodate, under Central Excise control, is facing an issue with accumulated Cenvat Credit due to the difference in duty rates on raw material imports and finished goods. They seek clarification on claiming a refund for the unutilized Cenvat Credit under Rule 5 of the Cenvat Credit Rules, 2004, despite not exporting goods. One response suggests a refund is possible subject to officer approval, while another highlights that refunds are typically not given unless related to exports or business closure, suggesting alternatives like export or advance authorization to manage credit accumulation.