Refund of accumulated Cenvat credit on exports remains available even when the exported final product is exempt from duty.

Unutilized accumulated Cenvat credit remained refundable under Rule 5 on export of final products, even though the exported electric vehicles had become exempt from central excise duty. CESTAT relied on binding High Court rulings and found no basis to depart from them, rejecting the Revenue's objection that exemption of the final product defeated refund entitlement. The Commissioner (Appeals) order granting refund was upheld and the Revenue's appeals were rejected.

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Issues: Whether the assessee was entitled to refund of unutilized accumulated Cenvat credit under Rule 5 when the exported final product had become exempt from central excise duty.

Analysis: The dispute arose from refund claims for accumulated credit on exported electric vehicles. The Revenue's objection was that, because the final product was exempt and duty on inputs could not be retained for domestic clearance, refund of the accumulated credit was not available. The Tribunal noted that the very question had already been concluded in favour of the assessee by binding High Court decisions and that the Revenue had not shown any reason to depart from those rulings. The exemption of the final product did not defeat the entitlement to refund of accumulated credit arising from exports.

Conclusion: The assessee was entitled to refund of the unutilized accumulated Cenvat credit, and the Revenue's challenge failed.

Final Conclusion: The Commissioner (Appeals) order granting refund to the assessee was upheld and the Revenue appeals were rejected.

Ratio Decidendi: Unutilized accumulated Cenvat credit is refundable on export under Rule 5, even if the final product exported is exempt from duty.

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