Claim of refund

[Guest]

SSI unit is making 80% of the total sales to EOU ie. without payment of duty. As such there is tremendous accumulation of cenvat credit.Is there any remedy to avoid such situation or to claim refund of such credit?

[Surender Gupta]

There is not provision in the Cenvat Credit Rules or Central Excise for getting any refund of unutilized cenvat credit accumulated due to substantial supply to EOU. You have either to use the credit for payment of excise duty or to carry forward the same. No other option is available at the moment.

AI Summary

Cenvat credit refund unavailable; unutilized credits must be used for duty payment or carried forward. There is no statutory mechanism under the Cenvat Credit Rules or Central Excise provisions to obtain a refund of accumulated Cenvat credit arising from substantial supplies to an Export Oriented Unit; the credit must be used for payment of excise duty or carried forward.