Refund under Rule 5 of the Cenvat Credit Rules survives a misdescribed claim where export prevents credit utilisation.

Refund under Rule 5 of the Cenvat Credit Rules, 2004 was available because the service tax paid on input services qualified for Cenvat credit, but export of goods prevented utilisation of that credit. The misdescription of the application as a rebate claim and the drafting defects in the supporting submissions were treated as curable procedural errors and did not defeat the substantive statutory benefit. The denial of refund was therefore set aside, and the assessee was held entitled to the refund claimed.

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Issues: Whether the assessee was entitled to refund of the service tax paid on input services under Rule 5 of the Cenvat Credit Rules, 2004 notwithstanding that the refund application was misdescribed as a rebate claim and contained procedural defects.

Analysis: The amount in dispute had been paid as service tax on input services and the assessee was otherwise entitled to avail Cenvat credit. Since the export of goods prevented utilisation of such credit, the claim was legally eligible for refund under Rule 5 of the Cenvat Credit Rules, 2004. The misdescription of the application and the drafting errors in the accompanying submissions were treated as curable procedural defects and were held not to defeat a substantive statutory benefit.

Conclusion: The assessee was held entitled to refund of Rs. 8,84,750/- under Rule 5 of the Cenvat Credit Rules, 2004, and the denial of the claim was set aside.

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