Export refund under Cenvat credit allowed despite SSI exemption, where inputs were used in exported goods and conditions were met.

Rule 5 of the Cenvat Credit Rules, 2002 permits refund of Cenvat credit attributable to inputs used in exported final products where adjustment is not possible, subject to the prescribed safeguards and conditions. The SSI exemption under Notification No. 8/2003-C.E. was treated as limiting credit only for inputs used in goods cleared for home consumption, not as a bar to credit or refund for inputs used in export goods. Where the assessee exported the finished goods and complied with Notification No. 11/2002 (N.T.), the refund claim remained admissible.

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Issues: Whether refund of duty paid on inputs was admissible under Rule 5 of the Cenvat Credit Rules, 2002 where the final products were exported, notwithstanding the assessee's SSI exemption under Notification No. 8/2003-C.E.

Analysis: Rule 5 permits refund of Cenvat credit attributable to inputs used in final products cleared for export, where adjustment is not possible, subject to the prescribed safeguards, conditions and limitations. The SSI exemption notification was read as restricting credit only in respect of inputs used in goods cleared for home consumption and not as barring credit or refund for inputs used in export goods. The assessee had exported the finished goods and complied with the conditions under Notification No. 11/2002 (N.T.).

Conclusion: The refund claim was admissible and the revenue's challenge failed.

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