CENVAT refund on export input services turns on admissibility and correct formula-based computation.

Refund of unutilised CENVAT credit was claimed under Rule 5 of the CENVAT Credit Rules, 2004 read with Notification No. 27/2012-CE for input services used in exporting software development services. The disputed services were treated as admissible input services on the basis of the authorities relied upon, and the invoice record supported the claim. The refund computation was also found to be incorrect because the original authority applied the formula improperly and miscalculated the eligible amount. The denial of refund on the disputed services was therefore unsustainable, and the matter was sent back for recomputation after hearing the claimant.

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Issues: Refund of unutilized CENVAT credit on input services used for export of software development services and correctness of the refund computation.

Analysis: The refund claim arose under Rule 5 of the CENVAT Credit Rules, 2004 read with Notification No. 27/2012-CE dated 18.6.2012. The disputed services were held admissible as input services in the decisions relied upon, and the appeal record contained invoice details supporting the claim. The computation adopted by the original authority was also found to be erroneous in applying the refund formula and in determining the eligible amount.

Conclusion: The denial of refund on the disputed input services was not sustainable. The appeals were allowed and the original authority was directed to recompute the refund amount in accordance with law after giving the appellant an opportunity of hearing.

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