Rule 5A – Refund of CENVAT credit to units in specified areas :

The Central Government may allow refund of CENVAT credit of duty taken on inputs used in the manufacture of final products cleared in terms of Notification No. 20/2007-CE dated 25.04.2007, if the manufacturer is unable to utilize such credit for paying duty on such final products. [Notification No. 20/2007 CE dated 25.04.2007 grants exemption to certain specified goods cleared from units located in North-Eastern States in respect of duty paid in cash.]

However, the refund shall not be allowed if the final products are exempt or subject to nil rate of duty. The refund of credit shall be allowed subject to prescribed procedures, conditions and limitations.

For the purposes of this rule, “duty” means any of the duties specified in rule 3 (1).