Refund of Cenvat credit under Rule 5 of Cenvat Credit Rules, 2004 and Rebate of duty under rule 18 of Central Excise Rules, 2002 - Instructions - Central Excise - GENERAL INSTRUCTION NO. 13/2015

GOVERNMENT OF INDIA, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, OFFICE OF THE COMMISSIONER OF CENTRAL EXCISE,CUSTOMS S. TAX, NO.71, CLUB ROAD, BELGAUM - 590 001 DATED 04.03.2015 GENERAL INSTRUCTION NO. 13/2015 Sub : Refund of Cenvat credit under Rule 5 of Cenvat Credit Rules, 2004 and Rebate of duty under rule 18 of Central Excise Rules, 2002 - Instructions- Reg., In terms of Rule 5 of Cenvat Credit Rules, 2004, a manufacturer who clears a final product or an intermediate product for export without payment of duty under bond or letter of undertaking, or a service provider who provides an output service which is exported without payment of service tax, shall be allowed refund of Cenvat credit. 2. In this regard, attention is drawn to the Notification No. 06/2015 C.E. (NT) dated 01.03.2015 where in Rule 5 of Cenvat Credit Rules, 2004 has been amended by inserting the following clause in Explanation(l) after clause (1), as below; (IA) export goods means any goods which are to be taken out of India . Attention is also drawn to the Notification No. 08/2015 C.E. (NT) dated 01.03.2015 where in explanation to Rule 18 of Central Excise Rules, 2002 has been substituted by the following explanation. Explanation. - For the purposes of this rule, export , with its grammatical variations and cognate expressions, means taking goods out of India to a place outside India and includes shipment of goods as provision or stores for use on board a ship proceeding to a foreign port or supplied to a foreign going aircraft. 3. The above amendments categorically clarify that cash refund of the accumulated CENVAT credit, and Rebate of Excise duty is eligible only when the goods are physically taken out to a territory outside India and not eligible when supplies are made as deemed exports. Deemed Exports refers to those transactions in which goods supplied do not leave country and which cannot be treated on par with physical exports. In view of the above, refund of the accumulated CENVAT credit is not eligible to a manufacturer when supplies are made to EOU/EHTP/STPs etc as deemed exports.. 4. Jurisdictional Assistant Commissioners/ Deputy Commissioner shall take note of the above amendments while sanctioning refund of Cenvat credit under Rule 5 of Cenvat Credit Rules, 2004, and Rebate under rule 18 of Central Excise Rules, 2002. (Issued from file C.No.1V/16/02/2015 Tech.) (B.HARERAM) COMMISSIONER