Refund of unutilised cenvat credit, Central Excise

[kiran kujur]

if any asseessee availing notification no. 20/2007 dated 25-4-07 as amended have accumulated cenvat credit of capitak goods and s.tax on input services, but they are in a position to utilise whole of cenvat credit on input.are they can get refund of unutilised credit on inputs by utilising the credit of cap. goods and s.tax and if they can get the same, at which extent?pl illustrate an example.

Posts / Replies

[Surender Gupta]

Refund of cenvat credit is governed by Rule 5A of the cenvat credit rules 2004. Accordingly only cenvat credit pertaining to inputs are allowed to be refunded. Rule 5A does not provide refund of cenvat crdit on input services and capital goods. Therefore, while utilizing the credit, it is advisable to use the credit of input service and capital goods first to get the optimum benefit of scheme.