Refund or adjustment against dues

This query is : Resolved

ADARSH (Querist)
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26 February 2009 Is it compolsoury to take refund of service tax paid by exporter as per Notification 40-41/2007 or they can adjust the ST against the Excise Dues of the loacl business.(CENVAT CREDIT)

Dayal

Dayal (Expert)
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27 February 2009 No it is not compulsory to seek refund, as the notification is not explicit about such arrangement. This refund is mainly for exporters (Traders / Third party) who are not manufacturers and do not have the utility for such input credit.

This arrangement is to eliminate the cascading effect of taxes on the exporters

Therefore you can take the input credit , if you are manufacturer/service provider for utilisation against excise duty on goods or service tax on output services.