Deemed credit refund denied where credit was already utilised and export-condition requirements were not strictly met.

Refund of deemed credit under Rule 57F(13) was treated as unavailable where the credit had already been utilised towards duty liability, leaving no unutilised balance to refund. The Tribunal also held that the export-based refund condition in Para 2 of the Appendix to Notification No. 85/87 had to be strictly satisfied, and the assessee had not met the prescribed proportion of export clearances for the relevant period. On those findings, refund was inadmissible and the relief granted by the Commissioner (Appeals) was unjustified.

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Issues: Whether refund of deemed credit was admissible under Rule 57F(13) of the Central Excise Rules, 1944, and whether the condition in Para 2 of the Appendix to Notification No. 85/87 dated 01.03.1987 was satisfied.

Analysis: The Tribunal accepted the Revenue's case that the assessee had already utilised the deemed credit while discharging duty liability at the time of export, leaving no unutilised balance available for refund. It further held that compliance with the condition requiring the prescribed proportion of export clearances was mandatory, and that the assessee had not fulfilled that requirement for the relevant refund claim period.

Conclusion: Refund was not admissible and the Commissioner (Appeals) was not justified in granting relief.

Ratio Decidendi: Refund of deemed credit under Rule 57F(13) is available only when an unutilised balance actually remains and the notification conditions governing export-based refund claims are strictly satisfied.

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