Refund of unutilized deemed CENVAT credit held admissible in principle, subject to verification of supporting records.

Refund of unutilized deemed CENVAT credit accumulated as on 31.03.2003 was found admissible in principle under the relevant notification and Rule 5, because the cited precedents concerned utilisation of accumulated credit after rescission rather than a refund claim. The Tribunal held that entitlement could not be finally denied merely on alleged non-production of evidence or non-compliance without examining the supporting records. The matter was therefore remitted to the adjudicating authority for verification of the documents and fresh decision.

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Issues: Whether refund of unutilized deemed CENVAT credit accumulated as on 31.03.2003 was admissible under the relevant notification and Rule 5, and whether the matter required verification of supporting documents.

Analysis: The claim was rejected below on the grounds of alleged non-production of evidence and non-compliance with the notification. The Tribunal noted that the relevant notification permitted the claim and that the cited precedents dealt with utilisation of accumulated credit after rescission, whereas the present case involved a refund claim. The Tribunal further found that the claimant's entitlement could not be finally denied without examination of the documents supporting the refund claim.

Conclusion: The refund claim was held to be admissible in principle, but the matter was remitted to the adjudicating authority for verification of the records and fresh decision.

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