Cenvat credit refund for export services allowed where input services had prior acceptance, except air freight exclusion.

Refund of unutilised Cenvat credit under Rule 5 of the Cenvat Credit Rules, 2004 read with Notification No. 05/2006-C.E. (N.T.) was treated as admissible for input services used in export of information technology software services where the department had not disputed those services at the credit-availment stage. The Tribunal noted that refund could not be denied merely on alleged lack of nexus or invoice-export mismatch when earlier periods in the same assessee's case had already allowed substantially similar services. The claim was therefore allowed in line with the earlier decision, except for transportation of goods by air, which remained outside the recognised benefit.

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Issues: Whether refund of unutilized Cenvat credit under Rule 5 of the Cenvat Credit Rules, 2004 read with Notification No. 05/2006-C.E. (N.T.) dated 14.03.2006 was admissible for services used in export of information technology software services, and whether the claim could be denied for want of nexus or on the ground of service-wise exclusion.

Analysis: The refund claim had been rejected below on the basis of alleged mismatch between export proceeds and invoices and on the premise that the input services had no nexus with export activity. The Tribunal noted that in the appellant's own earlier period, refund had already been allowed for substantially similar services, and that at the stage of availment the department had not disputed the services as input services. In such circumstances, the refund under Rule 5 could not be denied merely at the stage of claim, except to the extent a particular service was specifically outside the benefit already recognized in the earlier decision.

Conclusion: The refund claim for unutilized Cenvat credit was allowed following the earlier decision in the appellant's own case, except insofar as it related to transportation of goods by air.

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