Did you Notice?
WE suggested in DDT 1282 - 20.01.2010 ( after the refund circular) that:
Unfortunately, as per the illustration given in the Notification 5/2006, the refund claim is not the ACCUMULATED credit as clarified by the Board, but the refund of CREDIT TAKEN DURING THE QUARTER. The illustration given in the Notification says “Maximum refund = Total CENVAT credit taken on input services during the given period x export turnover ÷ Total turnover”
Board wants the field formations to view the illustration in the Notification in the light of the new illustration given in the Circular. How can this be possible? Now the denominator, i.e total turnover in the above equation should be only for the quarter July to September or should it also include Apr-June quarter also in the example given by the Board? If the intention is to refund the ACCUMULATED credit as mentioned in the clarification, why can't simply refund the closing balance of the credit at the end of the quarter without any hassles?
Now they removed these illustrations A and B...and the JS TRU letter says:
The illustration given in condition 5 of the Appendix to the Notification has been deleted. This ensures that refund of CENVAT credit which has been availed in the period prior to the quarter/ period for which the refund has been claimed is also eligible for refund. The refund claims should be calculated only on the basis of the ratio of the export turnover to the total turnover of the claimant. Thus, if the CENVAT credit available to the exporter at the end of the quarter, or month, as the case may be, is Rs. 1 crore , and the ratio of export to total turnover during the quarter is 50%, then Rs. 50 lakh should be refunded to the exporter. The essence of the changes is that refund shall be available for all goods, or input services, on which CENVAT is permissible and should be processed accordingly. Further, refund of CENVAT should not be linked to CENVAT taken in a particular period only.