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

Refund of Cenvat Credit limited to non utilisable credit or closure; claims subject to officer satisfaction.
Refund of accumulated Cenvat Credit is not generally available for routine domestic clearances; refunds under the Cenvat Credit Rules, 2004 arise only where credit cannot be utilized-such as accumulation from continuous exports-or on business closure, and any claim is subject to the satisfaction of the revenue officer. As a practical alternative, exporters may use direct export, deemed export, SEZ supplies or advance authorization to avoid credit accumulation.