Refund of accumulated credit sustained where quantified export-linked credit was proved and the department showed no excess refund.

Refund of accumulated credit under the notification was upheld because the original authority had specifically quantified the input credit attributable to the exported goods for the relevant quarters, and that factual finding was not rebutted in appeal. The department produced no evidence that excess credit was refunded or that the credit actually taken differed materially from any amount suggested under the advance licence scheme or SION norms. The Board circular cited under Rule 191-B was held irrelevant on the facts. The refund was therefore correctly sustained and the departmental challenge failed.

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Issues: Whether refund of accumulated credit under the notification was rightly allowed when the department alleged non-compliance with the refund procedure and contended that credit may not have been taken because exports were made under an advance licence scheme.

Analysis: The original authority had specifically quantified the input credit attributable to the exported goods for the relevant quarters, and that finding was upheld in appeal. The department produced no evidence to rebut the recorded factual finding that credit had in fact been taken on the basis of documents and that only the actual credit attributable to the exports was refunded. The objection based on advance licence and the reference to sion norms were not supported by any showing of excess refund or any material variation between credit actually taken and credit that would hypothetically arise under those norms. The Board circular cited in the context of Rule 191-B was held to have no relevance on the facts.

Conclusion: The refund was correctly upheld and the departmental challenge was rejected.

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