Refund of reversed credit for export inputs allowed where advance licence benefit was never availed and licences were surrendered.

Refund of credit reversed on inputs used for exports was held admissible where the assessee had not availed Notification No. 203/92-Cus. benefits, had surrendered the value-based advance licences, and the unutilised licences were cancelled. Because no goods were imported against the licences and the notification benefit was never taken, credit reversal was not legally required. The Trade Notice was relied on to support refund where reversal was unnecessary, and the earlier ruling cited in the order was followed. The refund claim was therefore allowed.

---

---

Issues: Whether refund of credit reversed on inputs used for export was admissible when the assessee had not availed the benefit of Notification No. 203/92-Cus. and had surrendered the value based advance licences, which were cancelled as unutilized.

Analysis: The assessee had fulfilled the export obligation but had not imported any goods against the advance licences. The licences were surrendered and cancelled, showing that the benefit of the notification was never availed. In such circumstances, reversal of credit was not required. The Trade Notice also supported refund where credit reversal was not legally necessary. The reasoning followed the earlier ruling relied upon in the order.

Conclusion: The refund claim was admissible and the appeal succeeded.

---