Cenvat Credit Refund Procedures

[Central Excise Notification 27 (Non Tariff) dated 18^th June 2012]

In exercise of the powers conferred by rule 5 of the CENVAT Credit Rules, 2004 (hereinafter referred to as the “said rules”), and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue), No 5/2006 – Central Excise (N.T), dated the 14^th March, 2006, published in Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R 156(E), dated the 14^th March, 2006, the Central Board of Excise and Customs hereby directs that refund of CENVAT credit shall be allowed subject to the procedure, safeguards, conditions and limitations as specified below, namely:-.

2.0 Safeguards, conditions and limitations.- Refund of CENVAT Credit under rule 5 of the said rules, shall be subjected to the following safeguards, conditions and limitations, namely:-

(a) the manufacturer or provider of output service shall submit not more than one claim of refund under this rule for every quarter:

provided that a person exporting goods and service simultaneously, may submit two refund claims one in respect of goods exported and other in respect of the export of services every quarter.

(b) in this notification quarter means a period of three consecutive months with the first quarter beginning from 1^st April of every year, second quarter from 1^st July, third quarter from 1^st October and fourth quarter from 1^st January of every year.

(c) the value of goods cleared for export during the quarter shall be the sum total of all the goods cleared by the exporter for exports during the quarter as per the monthly or quarterly return filed by the claimant.

(d) the total value of goods cleared during the quarter shall be the sum total of value of all goods cleared by the claimant during the quarter as per the monthly or quarterly return filed by the claimant.

(e) in respect of the services, for the purpose of computation of total turnover, the value of export services shall be determined in accordance with clause (D) of sub-rule (1) of rule 5 of the said rules.

(f) for the value of all services other than export during the quarter, the time of provision of services shall be determined as per the provisions of the Point of Taxation Rules, 2011.

(g) the amount of refund claimed shall not be more than the amount lying in balance at the end of quarter for which refund claim is being made or at the time of filing of the refund claim, whichever is less.

(h) the amount that is claimed as refund under rule 5 of the said rules shall be debited by the claimant from his CENVAT credit account at the time of making the claim.

(i) In case the amount of refund sanctioned is less than the amount of refund claimed, then the claimant may take back the credit of the difference between the amount claimed and amount sanctioned.

3.0 Procedure for filing the refund claim. - (a) The manufacturer or provider of output service, as the case may be, shall submit an application in Form A annexed to the notification, to the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, as the case may be, in whose jurisdiction,-

(i) the factory from which the final products are exported is situated.

(ii) the registered premises of the provider of service from which output services are exported is situated.

(b) The application in the Form A along with the documents specified therein and enclosures relating to the quarter for which refund is being claimed shall be filed by the claimant, before the expiry of the period specified in section 11B of the Central Excise Act, 1944 (1 of 1944).

(i) the individual or the proprietor in the case of proprietary firm or karta in case of Hindu Undivided Family as the case may be;

(ii) any partner in case of a partnership firm;

(iii) a person authorized by the Board of Directors in case of a limited company;

(iv) in other cases, a person authorized to sign the refund application by the entity.

(d) The applicant shall file the refund claim along with the copies of bank realization certificate in respect of the services exported.

(e) The refund claim shall be accompanied by a certificate in Annexure A-I, duly signed by the auditor (statutory or any other) certifying the correctness of refund claimed in respect of export of services.

(f) The Assistant Commissioner or Deputy Commissioner to whom the application for refund is made may call for any document in case he has reason to believe that information provided in the refund claim is incorrect or insufficient and further enquiry needs to be caused before the sanction of refund claim.

(g) At the time of sanctioning the refund claim the Assistant Commissioner or Deputy Commissioner shall satisfy himself or herself in respect of the correctness of the claim and the fact that goods cleared for export or services provided have actually been exported and allow the claim of exporter of goods or services in full or part as the case may be.

[F No 268/07/2012-CX.8]

Annexure

Form A

Application for refund of CENVAT Credit under rule 5 of the CENVAT Credit Rules, 2004 for the Quarter ending

To,

The Assistant Commissioner or Deputy Commissioner of Central Excise,

………………………………………………………….

Sir,

I/ We have exported, the final products or output services during the Quarter and am/ are claiming the refund of CENVAT Credit in terms of Rule 5 of the CENVAT Credit Rules, 2004 as per the details below:

S No	Description	Amount in Rs
1	Total value of the goods cleared for export and exported during the quarter.
2	Export turnover of the services determined in terms of Clause D of sub-rule (1) of rule 5.
3	Total CENVAT Credit taken on inputs and input services during the quarter.
4	Amount reversed in terms of sub-rule (5C) of rule 3
5	Net CENVAT Credit = (3) – (4)
6	Total value of all goods cleared during the quarter including exempted goods, dutiable goods and goods for export.
7	Export turnover of services and value of all other services, provided during the said quarter.
8	All inputs removed as such under sub-rule (5) of rule 3, against an invoice during the quarter.
9	Total Turnover = (6) + (7) + (8)
10	Refund amount as per the formula = (1) * (5)/(9), in respect of goods exported.
11	Refund amount as per the formula = (2) * (5)/(9), in respect of services exported.
12	Balance of CENVAT Credit available on the last day of quarter.
13	Balance of CENVAT Credit available on the day of filing the refund claim.
14	Amount claimed as refund, [Amount shall be less than the minimum of (10), (12) and (13) in case of goods or the minimum of (11), (12) and (13) in case of services]
15	Amount debited from the CENVAT account [shall be equal to the Amount claimed as refund (14)]

2.0 Details of the Bank Account to which the refund amount to be credited: Refund sanctioned in my favour should be credited in my/ our bank account. Details furnished below;

(i) Account Number:

(ii) Name of the Bank:

(iii) Branch (with address):

3.0 Declaration

(i) I/ We certify that the aforesaid particulars are correct.

(ii) I/ We certify that we satisfy all the conditions that are contained in rule 5 of the CENVAT Credit Rules, 2004 and in notification No. /2012 – CE (N.T) dated June, 2012.

(iii) I/ We am/ are the rightful claimant(s) of the refund of CENVAT Credit in terms of rule 5, the same may be allowed in our favour.

(iv) I/ We declare that no separate claim for drawback or refund has been or will be made under the Customs and Central Excise Duties Service Tax Drawback Rules, 1995 or for claim of rebate under Central Excise Rules, 2002 or the Export of Services Rules, 2005 or under section 93 or 93A of Finance Act, 1994( 32 of 1994).

(v) I/ We declare that we have not filed or will not file any other claim for refund under rule 5 of CENVAT Credit Rules, 2004, for the same quarter to which this claim relates.

Date	d	d	m	m	y	y	y	y	Signature of the Claimant	…………………..
									Name of the Claimant	…………………..
									Registration Number	…………………..
									Address of the Claimant	………………….

4.0 Enclosures:

(i) Copies of Customs Certified ARE-1 form along with the copies of shipping bill and bill of lading in case of the export of goods.

(ii) Copies of the Bank Realization Certificates for the export of services. [refer 3(d)]

(iii) Certificate in Annexure A-I from the Auditor (statutory or any other) certifying the correctness of refund claimed in respect of export of services. [refer 3(e)]

5.0

Refund Order No

Date

The refund claim filed by Shri/ Messrs ______________

has been scrutinized with the relevant Central Excise/ Service Tax records. The said refund claim has been examined with respect to relevant enclosures and has/ has not been found in order. A refund of Rs ___________ (Rupees ____________ ___________) is sanctioned/ The refund claim filed is rejected.

Assistant Commissioner or Deputy Commissioner of Central Excise

Forwarded to-

(i) The Chief Accounts officer, Central Excise, for information and necessary action.

(ii) The Commissioner of Central Excise.

Assistant Commissioner or Deputy Commissioner of Central Excise

(i) Passed for payment of Rs _________ (Rupees __________ ). The amount is adjustable under head “0038 – Union Excise Duties – Deduct Refunds/ 0044 – Service tax – Deduct Refunds”.

(ii) Amount credited to the account of the claimant as per the details below:

Amount refunded
Account Number
Reference No of transfer
Name of the Bank
Address of the Branch

Date

Chief Accounts officer

Annexure A –I

It is certified that:

(a) I am qualified auditor to audit the books of account of M/s ____________________

(b) I have audited the books of account of M/s __________________________ for the quarter ending __________________

(c) The value of the export turnover of services and total turnover of services mentioned at S No 2 and 7 in the table in Form A

(i) Is correct as per the books of account and relevant records of M/s ______________

(ii) Is in accordance with the provisions of rule 5 of the CENVAT Credit Rules, 2004.

Date

Auditor