Unused credit of AED (T&TA) – Refund eligible
If you don’t remember, this is the Additional Duty on Textiles and Textile Articles. There was a restriction that the credit of this AED can be used only for payment of the duty of AED (T&TA). What happens if the inputs suffered AED (T&TA) and the final product was not liable for this duty? And the final products were exported. Can the assessee claim refund? In an identical situation, with respect to AED(GSI), the Board had in Circular No. 701/17/2003-CX, dated 12.3.2003, clarified that the refund of AED(GSI) is to be allowed under Rule 5 of the CENVAT Credit Rules, 2002, regardless of the fact that the said duty is not leviable on the finished product. Now will this clarification apply to AED (T&TA)?. It has taken the Board exactly four years to clarify that it does.
Board’s latest clarification proclaims that
Therefore, such unutilized accumulated credit of AED (T&TA) can be claimed as refund under rule 5 of the CENVAT Credit Rules, 2004 on export of goods. Accordingly, it is clarified that clarification issued for the refund of AED (GSI) under rule 5 of the CENVAT Credit Rules, 2002 vide Board’s Circular No. 701/17/2003-CX, dated 12.03.2003, will be applicable to AED (T&TA) subject to the conditions and limitations as prescribed under the said rules.
At this late point will any one get refund?