Our client one of the Bore well tools Manufacturing unit and they are availing their CENVAT Credit for their local sales as well as sometime they have done Export sales also. But major they are doing only local sales. In this juncture they are deciding to submit their rebate application in front of excise department for claiming refund of excise duty which materials are used to manufacturing for the final products to Exports. Please be noted, their purchases excise duty all are taken and utilized for local sales thru Cenvat credit procedure. Now my doubt is the above rebate claim refund application is eligible to submit for refund? Please clarify.
Credit can be taken immediately on receipt of the material.
credit is allowed only for those inputs which are used in providing out put service.
when inputs on which credit has been taken are removed equal credit should be reversed except in cases where the inputs are removed to job worker or removed for the purpose of providing output service.
On capital goods-
Only 50% of credit is eligible in the first year of receipt. The balance 50%can be taken in the next financial year.
/credit is not allowed for the amount of duty which has been claimed as depreciation.
When capital goods are removed outside, credit availed must be reversed except under some circumstances.
On input services-
Credit is allowed only after the payment is made for the input service.