Export Oriented Unit refund claims may be filed monthly, and deemed exports cannot be excluded from Cenvat credit refund computation.

A 100% Export Oriented Unit was entitled to file refund claims month-wise under Rule 5 of the Cenvat Credit Rules, 2004, because the specific refund condition for Export Oriented Units expressly allowed monthly filing and the domestic-unit restriction on quarterly claims could not be imported into that clause. The exclusion of deemed exports from refund computation was also rejected, as refund under Rule 5 concerns accumulated Cenvat credit and deemed exports contributed to that accumulation even though no duty was paid by the unit on such clearances. The impugned order was set aside and consequential relief followed.

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Issues: (i) Whether a 100% Export Oriented Unit could file a refund claim for each calendar month under Rule 5 of the Cenvat Credit Rules, 2004. (ii) Whether the value of deemed exports could be excluded while computing entitlement to refund of accumulated Cenvat credit.

Issue (i): Whether a 100% Export Oriented Unit could file a refund claim for each calendar month under Rule 5 of the Cenvat Credit Rules, 2004.

Analysis: The refund condition in the relevant appendix provided that claims are generally not to be filed more than once in a quarter, but expressly carved out an exception for an Export Oriented Unit, permitting submission for each calendar month. The additional export-percentage condition applied only to domestic units and could not be read into the specific clause governing Export Oriented Units.

Conclusion: The refund claim by the 100% Export Oriented Unit could be filed month-wise and rejection on that ground was unsustainable.

Issue (ii): Whether the value of deemed exports could be excluded while computing entitlement to refund of accumulated Cenvat credit.

Analysis: Refund under Rule 5 is of accumulated Cenvat credit, and deemed exports do not involve duty payment by a 100% Export Oriented Unit. Since deemed exports also contribute to accumulation of Cenvat credit, their value could not be excluded for the purpose of refund computation on the basis suggested by the Revenue.

Conclusion: The objection based on deemed exports was rejected and could not support denial of refund.

Final Conclusion: The impugned order was set aside and the appeal succeeded, with consequential relief following in accordance with law.

Ratio Decidendi: A specific exception in an exemption or refund provision for Export Oriented Units must be given effect as written and cannot be narrowed by importing conditions applicable to domestic units, and deemed exports cannot be excluded where the scheme refunds accumulated Cenvat credit arising from such clearances.

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