CENVAT refund cannot be denied on mere invoice defects; fresh verification of service use and records was directed.

Refund under Rule 5 of the CENVAT Credit Rules, 2004 should not be denied merely because invoices or related documents contain procedural or technical defects when the services are stated to have been used for the unit and for export of the final product. The Tribunal treated the rejection as resting on hyper-technical objections rather than a substantive finding that the services were ineligible, and held that the refund claim required fresh verification. The matter was remanded to the original authority to examine receipt of inputs and input services, purchase orders, service dates, supporting records, and the Chartered Accountant certificate after following principles of natural justice.

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Issues: Whether refund under Rule 5 of the CENVAT Credit Rules, 2004 could be denied on the basis of alleged irregularities or technical defects in invoices and related documents, and whether the matter required remand for fresh verification.

Analysis: The refund claim had been rejected mainly on technical discrepancies in the invoices. The Tribunal noted that the invoices were stated to relate to services used for the appellant's unit and for export of the final product, and that the denial was founded on procedural objections rather than on a substantive finding that the services were unrelated. In such circumstances, the Tribunal applied the settled principle that substantive CENVAT credit benefit cannot be denied on mere procedural or hyper-technical lapses. At the same time, it found it appropriate to send the matter back so that the original authority could verify receipt of inputs and input services, the purchase orders, the dates and receipt of services, and the supporting records including the Chartered Accountant certificate, after following principles of natural justice.

Conclusion: The refund dispute was not finally decided on merits in favour of either side, and the matter was remanded to the original authority for fresh examination and verification.

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