Refund of unutilized Cenvat credit for a 100% EOU was sustained; registration was not required for the claim.

Refund of unutilized Cenvat credit lying with a 100% EOU was upheld after the first appellate authority relied on Karnataka High Court rulings that registration of the exporting unit was not necessary to claim such refund. The Revenue's contrary authority was distinguished because it concerned availment of credit for manufacture and clearance of goods for home consumption. No basis was shown to stay the refund order, and the stay petitions were dismissed.

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Issues: Whether the Revenue had made out a case for staying the operation of the order allowing refund of unutilized Cenvat credit.

Analysis: The refund claim related to unutilized Cenvat credit lying in balance with a 100% EOU. The first appellate authority had allowed the refund after considering the record and relying on the Karnataka High Court decisions holding that registration of the exporting unit was not necessary for claiming such refund. The contrary decision cited by the Revenue was distinguished on facts, as it dealt with availing credit for manufacture and clearance of goods for home consumption.

Conclusion: No case for stay was made out and the Revenue's stay petitions were dismissed.

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