Refund of CENVAT Credit - North Eastern States - Procedure
The Government has prescribed the procedure for claiming refund of the unutilised Cenvat Credit.
1. The manufacturer has to file a declaration with his AC/DC describing the finished goods, duty rate, manufacturing formula with reference to quantity and quality of the raw materials. If any changes take place with regard to the facts declared, a fresh declaration has to be filed.
2. A monthly statement by the 7th of the Month has to be filed giving details of opening balance, receipts, value, duty, amount of credit taken and quantity of inputs used during the month, final products manufactured, inputs lying in stock, credit utilised and the amount of credit lying in balance.
3. The AC/DC after verification will refund the unutilised credit within three months from the date of receipt.
4. If there is likely to be any delay in granting the refund, the AC can grant 80% of the amount claimed on a provisional basis by the 30th day of the month following the month under consideration.
There is an apparent contradiction between 2 and 3 above. The AC is required to grant the refund within three months, but if there is any delay in verification he is required to grant 80% refund by the end of the month. That is for the refund pertaining to say April, 2007, the assessee files the statement on 7th May, 2007 the AC is required to give refund by 6th August, 2007. However if there is delay in verification he is required to give 80% refund by 30th May, 2007. When does he take this decision on delay? Apparently by the 29th May, 2007!
Instead of giving the details that the assessee is required to give, it would have been better if a form had been prescribed like they have done for refunds under Rule 5.
And how is the refund going to be given? Should not the facility of crediting it directly to the bank account of the assessee be adopted?
Notification No. – C. E. (N.T.), Dated April 25, 2007