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?

AI Summary

SSI Unit's Unutilized Cenvat Credit Can't Be Refunded; Only Usable for Duty Payment or Carried Forward, Says Clarification. A query was raised regarding the accumulation of Cenvat credit by a Small Scale Industry (SSI) unit, which supplies 80% of its total sales to an Export Oriented Unit (EOU) without payment of duty, leading to significant unutilized credit. The response clarified that there is no provision under the Cenvat Credit Rules or Central Excise for refunding such unutilized credit. The available options are to use the credit for excise duty payments or carry it forward, with no other remedies currently available.