Rule-5 : Refund of CENVAT Credit :

The maximum amount of refund admissible is calculated as under-

Refund Amount= Export turnover of Goods + Export Turnover of Services x Net CENVAT Credit /Total Turnover.

‘Net Cenvat Credit’ means total Cenvat Credit availed on inputs and input services by the manufacturer or the output service provider as the case may be, reduced by the amount reversed in terms of Rule 3 (5C ) ,during the relevant period.

’Export turnover of goods’ means the value of final products and intermediate products cleared during the relevant period and exported without payment of central excise duty under bond or letter of undertaking.

’Total turnover’ means sum total of the value of  all excisable goods cleared during the relevant period including exempted goods ,dutiable goods and excisable goods exported plus export turnover of services and the value of all other services ,during the relevant period plus all inputs removed as such under rule 3 (5 )  against any invoice ,during the period for which claim is filed with excise department.

NOTE-  No refund shall be granted if exporter avails duty drawback /rebate.

Rule 5B : Refund of CENVAT Credit to service providers providing services taxed on partial reverse charge basis :

If a service provider provides services notified under section 68(2) of the Finance Act (i.e services taxed on reverse charge basis); and he is unable to utilize the CENVAT credit availed on inputs and inputs services for payment of service tax on such output services; then he shall be allowed refund of such unutilized CENVAT credit.

Refund of unutilized CENVAT Credit: The unutilized CENVAT credit taken on inputs and input services during the half year for providing partial reverse charge services shall be arrived as under-

Unutilized CENVAT credit taken on inputs and input services during the half year for providing partial reverse charge services = (A) – (B)

CENVAT credit taken on inputs and input services during the half year

X   Turnover of output service under partial reverse              charge during the half year

Where,

A=

Total turnover of goods and services during the half year

B=            Service Tax paid by the service provider for such partial reverse charge services during the half   year.