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

Cenvat credit entitlement for export related input services may be pursued as rebate or document based refund under notified procedures.
Exporter who debited CENVAT in RG 23A Part II obtained rebate for inputs but did not take CENVAT on certain services (terminal handling, banking and financial services on remittances, outward GTA, outward freight) citing Rule 2(l) CENVAT; Notification No. 41/2012 ST allows refund on schedule rates or on documents (with procedure via jurisdictional officer), and an alternative is claiming CENVAT credit where FOB place of removal is treated as port as supported by tribunal decisions; banking services may be reclaimed either by refund under the notification or by CENVAT credit claim.