Cenvat credit refund for export units upheld where inputs were duty-paid and used in exported final products.

A 100% export oriented unit was entitled to refund of unutilised Cenvat credit under Rule 5 of the Cenvat Credit Rules, 2002 where the inputs were purchased on payment of duty and used in exported final products. The duty payment and credit availment were undisputed, and Rule 5 was read as not excluding a 100% export oriented unit from refund relief. The prior decision in the appellant's own case on the same issue was followed in accordance with judicial discipline, so the refund claim was held allowable and consequential relief granted.

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Issues: Whether a 100% export oriented unit was entitled to refund of unutilised Cenvat credit under Rule 5 of the Cenvat Credit Rules, 2002 on inputs procured on payment of duty and used in the manufacture of exported final products.

Analysis: The input duty payment and availment of Cenvat credit were undisputed. Rule 5 provides refund of Cenvat credit taken on inputs used in the manufacture of final products cleared for export, and it does not exclude a 100% export oriented unit. The earlier decision on the same issue in the appellant's own case had already taken the same view, and the principle of judicial discipline required following that binding precedent.

Conclusion: The refund claim was allowable and the appeal succeeded, with consequential relief.

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