Refund of accumulated Cenvat credit on deemed exports to a 100% EOU upheld, with quarterly limitation computed from quarter-end.

Refund of accumulated Cenvat credit was held admissible where inputs were used in goods cleared to a 100% EOU under CT-3 certificates and treated as deemed export; the credit could not be denied merely because the clearances were to an EOU. The limitation objection to one quarterly refund claim also failed, because the filing period was to be computed with reference to the end of the relevant quarter, making the claim filed on 28.03.2007 within time. Refund was therefore directed to be granted with interest in accordance with law.

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Issues: (i) whether refund of accumulated Cenvat credit was admissible on inputs used in goods cleared to a 100% EOU under CT-3 certificates and treated as deemed export; (ii) whether one refund claim was barred by limitation.

Issue (i): whether refund of accumulated Cenvat credit was admissible on inputs used in goods cleared to a 100% EOU under CT-3 certificates and treated as deemed export.

Analysis: The refund claim arose from clearances made to a 100% EOU under the applicable exemption and procedural framework, where the appellant could not utilise the accumulated credit. The issue on admissibility of refund on such clearances was already settled in favour of the assessee by binding judicial precedent and by the Tribunal in the appellant's own earlier matter. The reasoning accepted that refund under the credit scheme cannot be denied merely because the clearances are to an EOU and are treated as deemed export.

Conclusion: The refund on merits was admissible and the finding against the assessee was set aside.

Issue (ii): whether one refund claim was barred by limitation.

Analysis: The claim relating to the quarter ending March 2006 was required to be filed with reference to the quarterly period as a whole. On that basis, the last date for filing was computed from the end of the quarter, and the claim filed on 28.03.2007 fell within time.

Conclusion: The refund claim was not time-barred and the rejection on limitation was unsustainable.

Final Conclusion: The assessee succeeded on both merits and limitation, and the refund was directed to be granted with interest in accordance with law.

Ratio Decidendi: Refund of accumulated Cenvat credit cannot be denied for inputs used in clearances to a 100% EOU treated as deemed export, and limitation for a quarterly refund claim must be computed with reference to the end of the relevant quarter.

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