Refund V/s Rebate on Input services

[Vartik Choksi]

We are manufacturer of excisable goods.99 % of the goods are exported out of India. We take CENVAT Credit in RG 23A Part II for the inputs and input services. We have filed rebate claim with the excise deparment for the inputs and input services used in the manufacturing of the excisable goods by debiting the CENVAT Credit in RG 23A Part II.  We have also received the refund from the department.

 

However we do not take the CENVAT of Input services on the following :

 

1. Terminal Handling Charges

2. Banking & Financial Services (Bank takes service tax on the remittance received from abroad)

3. Outward GTA (Service tax on GTA paid from the factory gate to container freight station)

4. Outward Freight Charges

 

As per Rule 2 (l) of CENVAT Credit Rules, 2004 the CENVAT Credit for the manufacturer means any service used by manufacturer up to the place of removal.  Therefore till date we have not taken CENVAT Credit on the above mentioned services.

 

The refund mechanism precsribed in Notification No. 41/2012 -ST dated 29-6-2012 is a complex. 

 

Now my questions are as under:

 

1.  Can I take the CENVAT on input services mentioned above in RG 23A Part II and file a rebate claim with the excise authority? 

 

2.  If answer to above question is negative, is there any other refund mechanism other than mentioned in Notification No. 41/2012 -ST dated 29-6-2012 through which refund may be claimed?

AI Summary

Manufacturer Seeks Guidance on CENVAT Credit for Terminal Handling & Banking Services Under Rule 2(l) and Notification No. 41/2012-ST A manufacturer exporting 99% of its excisable goods seeks advice on claiming CENVAT Credit for specific input services, such as terminal handling charges and banking services, which are not currently claimed under Rule 2(l) of the CENVAT Credit Rules, 2004. The discussion focuses on whether these credits can be claimed and how to navigate the complex refund mechanism under Notification No. 41/2012-ST. Responses suggest possible avenues, including claiming refunds under the notification or considering CENVAT Credit for services up to the port, supported by various legal precedents. The query also seeks clarification on claiming credits for banking services.