Refund of excise duty paid on inputs

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

27 November 2011 My company is engaged in generation of electricity which is exempt from excise duty. However we are paying duty @ 5% on the purchase of coal. I would like to know that whether we can claim refund of duty paid on inputs i.e. coal which is used for generation of exempted goods/services i.e. electricity??

NILESHKUMAR

NILESHKUMAR (Expert)
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28 November 2011 First of all you have not mentioned in your query that your company is registered under Central Excise or not as you said electricity is exempted from payment of excise duty .

Coming to your query , refund can be claimed under Rule 5 of CCR, 2004 subject to continious export where you can not utilise your accumulated cenvat credit other wise you can not encash Cenvat credit, it will be cost to your company.Please note for claiming any incentive as per Central Excise provisions you are required to get Central Excise Registration.

Querist : Anonymous

Querist : Anonymous (Querist)

29 November 2011 My company is registered with central excise however it is not engaged in export of excisable goods or provision of output service.

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U S Sharma

U S Sharma (Expert)
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29 November 2011 no input credit/refund unless the final product/service is leviable to duty ( except export)

U S Sharma

U S Sharma (Expert)
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29 November 2011 no input credit/refund unless the final product/service is leviable to duty ( except export)

U S Sharma

U S Sharma (Expert)
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29 November 2011 no input credit/refund unless the final product/service is leviable to duty ( except export)

Querist : Anonymous

Querist : Anonymous (Querist)

03 December 2011 Our final product i.e. electricity is not leviable to duty however our by product i.e. Fly Ash is leviable to BED duty @ 1% or 5%. But the amount of duty on Fly Ash is not enough to adjust amount of duty paid on purchase of input i.e. coal. Whether refund of duty on input can be claimed after adjusting the duty payable on By Product??