Refund of unutilised CENVAT credit cannot be denied solely for absence of ST-3 reflection when debit is recorded in accounts.

Refund of unutilised CENVAT credit under Rule 5 read with Notification No. 27/2012-CE (NT) could not be denied merely because the debit of the refund amount was not reflected in ST-3 returns. Clause 2(h) required the amount to be debited in the assessee's accounts, and that condition was satisfied on the facts. As the rejection rested only on non-reflection in ST-3, the denial was unsustainable. The refund rejection was therefore set aside and consequential relief followed.

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Issues: Whether refund of unutilized CENVAT credit under Rule 5 of the Cenvat Credit Rules, 2004 read with Notification No. 27/2012-CE (NT) dated 18.06.2012 could be rejected on the ground that the debit of the refund amount was not reflected in ST-3 returns, despite the amount having been debited in the accounts.

Analysis: The condition in clause 2(h) of the notification required debit of the refund amount in the assessee's accounts. It did not require reflection of such debit in the ST-3 returns. Since the disputed rejection was founded only on the absence of ST-3 reflection, the denial of refund was not sustainable.

Conclusion: The refund rejection was unjustified and was set aside, and the appeals succeeded with consequential reliefs as per law.

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