Turnover-based refund formula prevails over day-wise limits in input service credit refund under the notification.

A refund notification providing for refund of accumulated input service credit on the export turnover to total turnover formula cannot be supplemented by an extra day-wise restriction not found in the text. The authority's attempt to limit refund by confining eligibility to the few days remaining in the month of the invoice date had no statutory basis, because the notification required application of the prescribed turnover ratio for the relevant period, not proof that the services were rendered only within those days. The full refund admissible under the notification was therefore upheld, and the departmental challenge to the quantum restriction failed.

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Issues: Whether the refund of unutilized input service credit under Notification No. 5/2006-CE N.T. could be restricted by limiting the eligible amount to the number of days in the month corresponding to the invoice date, instead of applying the statutory export turnover to total turnover formula.

Analysis: The refund notification permitted refund of accumulated credit subject to the prescribed formula based on the ratio of export turnover to total turnover for the relevant period. There was no stipulation requiring the assessee to establish that the services covered by the invoice were rendered only during the few days remaining in the month. The restriction adopted by the original authority, by artificially confining the refund to three days in November, found no support in the statute or notification.

Conclusion: The refund could not be curtailed on a day-count basis, and the assessee was entitled to the full refund admissible under the notification. The Revenue's appeal failed.

Final Conclusion: The order allowing full refund was upheld and the departmental challenge to the quantum restriction was rejected.

Ratio Decidendi: Where a refund notification prescribes a turnover-based formula for refund of accumulated credit, the refund cannot be restricted by an additional day-wise limitation not found in the statutory text.

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