If any Inputs or Input Service has been used for


manufacture of final product which is cleared for export under bond: or

manufacture of  intermediate product cleared for export: or

used in providing output service which is exported


by the manufacturer or provider of output service towards payment of,

(i) duty of excise on any final product cleared for home consumption or for export on payment of duty; or
(ii) service tax on output service


where for any reason such adjustment is not possible, the manufacturer or the provider of output service shall be allowed refund of such amount subject to such safeguards, conditions and limitations, as may be specified, by the Central Government, by notification:


Exception-NO refund if Drawback or Rebate claimed

No refund in following cases

  • Drawback allowed under the Customs and Central Excise Duties Drawback Rules, 1995
  • Rebate of duty under the Central Excise Rules, 2002, in respect of such duty
  • Rebate of service tax under the Export of Service Rules, 2005 in respect of such tax.


Refund Amount=(Export Turnover of Goods+ Export turnover of services)/total turnover * Net Cenvat Credit


Here Export turnover is

Payment received for export services+ Payment received in advance for which provision has been completed


Procedure for Refund

  1. Only one refund claim per quarter
  2. In case refund for both goods and services filed, one refund for goods and one refund for services
  3. Value of goods cleared (whether Export or others) should match as per Excise Return
  4. Value of services should be as per  Prescribed Application in Form A required to AC/DC, along with specified documents
  5. Copy of Bank Realization Certificate requires that foreign remittance has been received
  6. Certificate from auditor (CA) required
  7. AC/DC shall check that goods have been cleared and services have been exported and allow refund
  8. In case refund granted is less than refund claimed, then balance can be reclaimed as credit
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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.