Retrospective restriction on AED (GSI) credit defeated refund claims for export inputs despite earlier circular-based relief.

Refund of AED (GSI) credit on inputs used in exported goods was denied because a retrospective amendment to the Cenvat Credit Rules, 2002 restricted utilisation of that credit even for the relevant period. Earlier Tribunal orders allowing refund, based on Board circulars, were treated as inapplicable after the statutory change. The Tribunal also noted that the same issue was pending before the jurisdictional High Court. On that basis, the rejection of the refund claims was upheld and the appeals were dismissed, leaving the impugned orders undisturbed.

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Issues: Whether refund of AED (GSI) credit on inputs used in the manufacture of exported goods was allowable in view of the retrospective amendment restricting utilization of such credit and the pending challenge before the High Court.

Analysis: The Tribunal noted that refund had been allowed in the appellant's own case earlier, relying on Board circulars clarifying refund of AED (GSI). However, the legal position had since changed because of the retrospective amendment to the Cenvat Credit Rules, 2002, which restricted utilization of AED (GSI) credit even for the period relevant to the refund claims. In that changed statutory setting, the earlier Tribunal orders were held to be inapplicable. The Tribunal also took note that the issue was pending before the jurisdictional High Court.

Conclusion: The refund claims were rightly rejected and the impugned orders required no interference.

Final Conclusion: The appeals failed on merits and were dismissed, leaving the rejection of the refund claims undisturbed.

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