Refund of unutilised excise credit on export remains admissible even if finished goods are not liable to the duty.

Refund of unutilised credit of Additional Duties of Excise (Goods of Special Importance) was treated as admissible on export of finished goods. The circular issued by the Board was read as permitting such refund, and entitlement was not lost merely because the exported finished goods were not themselves liable to that additional duty. The departmental objection ran contrary to the express position in the circular, so the refund claim was sustained.

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Issues: Whether refund of unutilised credit of Additional Duties of Excise (Goods of Special Importance) was admissible on export of finished goods even when the finished goods were not themselves liable to that additional duty.

Analysis: The circular issued by the Board permitted refund of unutilised credit of Additional Duties of Excise (Goods of Special Importance) on export of finished goods. The entitlement was not taken away merely because the exported finished goods were not subject to levy of the said additional duty. The departmental challenge was contrary to the expressed position in the circular.

Conclusion: Refund was admissible. The department's appeal failed.

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