Controlling authority for EOU/STP/EHTP units and the authority entitled to process the rebate claims filed by such units – Clarification - Reg. - Customs - 74/2007

OFFICE OF THE COMMISSIONER OF CUSTOMS CENTRAL REVENUE BUILDING, P.B.NO. 5400 QUEENS ROAD, BANGALORE 560001 Public Notice No. 74/2007 Date: 13/11/2007 Subject: Controlling authority for EOU/STP/EHTP units and the authority entitled to process the rebate claims filed by such units Clarification - Reg. Kind attention is invited to Public Notice No.56/2003 dated 21.04.2003 in terms of which the Commissioner of Customs, Bangalore will continue to have the administrative control over EOUs, STP and EHTP units within his territorial jurisdition. The EOU/EHTP/STP units are entitled for claiming rebate of service tax paid on taxable service exported or service tax paid on inputs and input services used providing such taxable services. Further, as per Rule 5 of Cenvat Credit Rules, 2004, the refund of accumulated CENVAT credit is admissible in those cases where a manufacturer or provider of output service is not in a position to utilise the input credit or input service credit taken. In this regard, a doubt has been raised as to which authority (i.e., customs formation or service tax formation) should disburse such rebate of service tax or refund of accumulated credit. It is reported that due to this confusion EOU/EHTP/STP units are not getting rebate/refund in time. The issue has been examined and the Board has issued clarification vide F.No.127/87/2007-CX.4 (Pt) dated 24.10.2007. In terms of the same, it has been decided that the rebate or refund of unutilised credit in respect of input and input services used in relation to manufacture of goods which are exported by EOUs would be processed and disbursed by the jurisdictional Central Excise or Customs authority and not by the Service Tax Commissionerate. However, if an EOU provides/exports taxable services, it would register itself with the jurisdictional Service Tax Commissionerate and refund or rebate in respect of inputs or input services used for export of such services would be sanctioned by the Service Tax Commissionerates. Other controls relating to registration, filing of return etc. in respect of EOUs who pay service tax or engaged in provision of taxable service would remain the same as it exists at present, i.e. they should be registered with the Service Tax Commissionerates. Sd/- (A. K. KAUSHAL) COMMISSIONER OF CUSTOMS