TaxTMI 
TaxTMI 
We have a manufacturing unit and have excise registration and from past 1 one year unit is not working and we have unutilized credit lying in our CENVAT how can we encash the credit it will also be ok if we have to surrender the registration.
Refund of unused CENVAT credit
05 Jul 2012 
3 Replies 
8507 Views Asked by
Refund of CENVAT credit: statutory refund procedure is the principal route to reclaim accumulated unutilised credit from exports or inactivity.
Where CENVAT credit accumulates due to exports under bond or inactivity, the operative remedy is a refund under the statutory refund procedure. Claimants must submit the prescribed refund application together with CENVAT records, evidence of input or input service use in exported goods, original ARE-1, relevant invoices, shipping documentation, and a disclaimer certificate where applicable; other supporting documents may be required. The discussion confirms refund under the statutory procedure as the primary means to recover unutilised credit, including where assembly operations fail to generate output liability. (AI Summary)
Where CENVAT credit accumulates due to exports under bond or inactivity, the operative remedy is a refund under the statutory refund procedure. Claimants must submit the prescribed refund application together with CENVAT records, evidence of input or input service use in exported goods, original ARE-1, relevant invoices, shipping documentation, and a disclaimer certificate where applicable; other supporting documents may be required. The discussion confirms refund under the statutory procedure as the primary means to recover unutilised credit, including where assembly operations fail to generate output liability. (AI Summary)