CENVAT credit refund under Rule 5 is confined to export-linked inputs, excluding credit on stock lying unused.

Refund of accumulated CENVAT credit under Rule 5 is limited to credit attributable to exported goods and excludes credit relatable to inputs remaining in stock on the relevant date. The authorities correctly computed the closing credit balance, removed the portion linked to physical stock of raw materials, and sanctioned only the unutilized balance connected to exports. The broader refund claim was therefore not supported on the facts, and the restricted refund was sustained.

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Issues: Whether the appellant was entitled to refund of the entire unutilized CENVAT credit under Rule 5, or whether the credit relatable to inputs physically lying in stock on the relevant date was liable to be excluded.

Analysis: Refund under Rule 5 is confined to the credit actually attributable to exported goods and cannot extend to input credit remaining embedded in raw materials or stock that did not go into the exported goods. The record showed that the authorities computed the closing credit balance, excluded the credit relating to physical stock of raw materials, and sanctioned only the balance that remained unutilized and attributable to exports. The claimed broader refund was not supported on the facts, and the cited precedents were found inapplicable.

Conclusion: The appellant was not entitled to the entire refund; the restricted refund sanctioned by the authorities was and was sustained.

Final Conclusion: The rejection of the claim for refund beyond the amount worked out by excluding credit on inputs lying in stock was upheld, and the appeal failed.

Ratio Decidendi: Under Rule 5, refund of accumulated CENVAT credit is limited to the credit attributable to exported goods and does not include credit relatable to inputs remaining in stock on the relevant date.

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