Credit of input service instead of claiming refund for export.

[Harishanker Patel]

Dear All,

1.Whether aay manufacturer of excisable goods can take credit of all input services used for export of excisable goods instead of claim refund under rule 5.

2.If no than whether he can take credit on services for which refund is not available as per Notification No. 52/2011-Service Tax.

AI Summary

Cenvat credit availability limited for export related services; exporters are directed to use the refund mechanism for service tax.
The applicable notification provides refund routes for service tax attributable to exports-actual refund with documentary proof or a percentage based formula-and the succeeding notification requires a declaration that no Cenvat credit of service tax on specified services used for export has been taken or shall be taken, making the refund route the advisable mechanism for manufacturers exporting excisable goods.