Export refund under Cenvat Credit Rules limited to credit attributable to exported goods, excluding stock-related input credit.

Refund of unutilized Cenvat credit for exports was confined to the credit actually attributable to exported goods after excluding credit relatable to raw materials and finished goods lying in stock. The Tribunal held that Rule 5 of the Cenvat Credit Rules, 2002 permits refund only of accumulated credit that could not be used for domestic clearances, and that the adjudicating authority's working correctly reflected the credit available at the end of the relevant quarter. The appellant's cited decisions were found factually inapplicable. The refundable amount was therefore restricted to Rs. 39,49,239, and no further refund was admissible.

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Issues: Whether the refund of unutilized cenvat credit attributable to exports was correctly restricted to the balance remaining after excluding input credit relating to physical stock of raw materials and finished goods under Rule 5 of the Cenvat Credit Rules, 2002 read with Notification No. 11/2002-CX(NT) dated 01.03.2002.

Analysis: The refund claim was examined against the credit available at the end of the relevant quarter. The credit remaining unutilized was worked out after excluding the credit embedded in inputs lying in stock and in finished goods in stock. On that basis, the refundable amount was computed at Rs. 39,49,239/-, which was lower than the amount claimed. The Tribunal found that Rule 5 permits refund only of accumulated credit that could not be utilized for domestic clearances, and that the working adopted by the adjudicating authority correctly reflected the credit attributable to exported goods. The decisions relied on by the appellant were held to be factually inapplicable.

Conclusion: The refund was correctly restricted to Rs. 39,49,239/-, and the assessee was not entitled to the additional amount claimed.

Ratio Decidendi: Under Rule 5 of the Cenvat Credit Rules, 2002, refund of accumulated input credit for exports is confined to the credit actually attributable to exported goods after excluding credit relatable to stock lying on hand.

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