Availment of cenvat credit of service tax paid and refdund under rule 5 of cenvat credit rules

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A 100 % EOU unit is manufacturing excisable goods which are exempted from Excise duty by virtue of Notification. The unit has received certain taxable input services for their manufacturing / clearance activities. Further the unit has no DTA sales. Can the unit avail the credit of input service tax paid by them and claim refund under rule 5 of Cenvat credit rules .

AI Summary

EOU Manufacturing Exempt Goods Eligible for Cenvat Credit Refund on Service Tax Under Rule 5 of Cenvat Credit Rules 2004. A 100% Export-Oriented Unit (EOU) manufacturing excisable goods exempt from excise duty sought clarification on availing Cenvat credit for service tax paid on input services, given no Domestic Tariff Area (DTA) sales. Responses confirmed eligibility for a refund under Rule 5 of the Cenvat Credit Rules, 2004. The replies referenced specific notifications and rules, indicating that the credit for service tax and excise duty is refundable when inputs or services are used for manufacturing goods or providing services for export. The discussion emphasized compliance with relevant notifications and conditions.