Refund of Unutilised CENVAT Credit - CBEC, Please Notify
BY Notification No 28/2012-CX., (N.T.), Dated: June 20, 2012, a new Rule 5B has been inserted in the CENVAT Credit Rules, 2004 as under:
5B. Refund of CENVAT credit to service providers providing services taxed on reverse charge basis. - A provider of service providing services notified under sub-section (2) of section 68 of the Finance Act and being unable to utilise the CENVAT credit availed on inputs and input services for payment of service tax on such output services, shall be allowed refund of such unutilised CENVAT credit subject to procedure, safeguards, conditions and limitations, as may be specified by the Board by notification in the Official Gazette.
Even after five months of inserting the Rule 5B, the Notification prescribing the procedure, safeguards, conditions and limitations for granting refund are not notified. Service Tax assessees who are paying only 50% of the tax under the reverse charge mechanism may have accumulated CENVAT credit, which they are promised as refund but which they cannot claim as there is no procedure prescribed.
Has the Board forgotten about this Rule?
DDT had raised this issue in - 26.10.2012. Will the Board do something?