TaxTMI 
TaxTMI 
Dear Sir, Whether a manufacturer can claim CENVAT refund, under notification no. 05/2006 dtd 14.03.2006 N.T., if the removal is towards 'deemend export' as deemed exports are excise free.
21 Mar 2007 
2 Replies 
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CENVAT refund eligibility denied for deemed exports as Rule five requires clearance under bond or letter of undertaking.
Refund under Notification No. 5/2006 is unavailable for deemed exports because Rule 5 requires clearance for export under bond or Letter of Undertaking in accordance with the Central Excise Rules, 2002; deemed exports are treated as home consumption and exempted from excise, and the alternative of paying duty then claiming refund under the Foreign Trade Policy is generally impractical. (AI Summary)
Refund under Notification No. 5/2006 is unavailable for deemed exports because Rule 5 requires clearance for export under bond or Letter of Undertaking in accordance with the Central Excise Rules, 2002; deemed exports are treated as home consumption and exempted from excise, and the alternative of paying duty then claiming refund under the Foreign Trade Policy is generally impractical. (AI Summary)