Refund of accumulated CENVAT credit remains admissible for exported exempted goods despite absence of bond compliance.

Refund of accumulated CENVAT credit attributable to exported exempted goods is stated to remain admissible where export is undisputed, even if the goods were not sent under bond. The absence of bond compliance is treated as a procedural defect that does not defeat the refund claim, because the object of the scheme is to prevent domestic taxes from burdening exports. The analysis applies Rule 5 of the Cenvat Credit Rules, 2004 and reflects the settled view that refund cannot be denied merely on the ground of non-fulfilment of the bond requirement when the export itself is established.

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Issues: Whether refund of accumulated CENVAT credit was admissible on export of exempted goods where the goods were not exported under bond.

Analysis: The claim was examined in the context of Rule 5 of the Cenvat Credit Rules, 2004 and the settled position that exports are not to bear domestic taxes. The absence of export under bond was treated as a procedural deficiency, not as a ground to defeat the refund claim when the fact of export was undisputed. The reasoning followed the settled view that accumulated credit attributable to exported goods remains refundable even where the final products are otherwise exempt and the bond requirement is not fulfilled, since the object of the scheme is to prevent export of taxes.

Conclusion: The refund was admissible and the denial was unsustainable; the issue was decided in favour of the assessee.

Ratio Decidendi: Refund of accumulated CENVAT credit attributable to exported goods cannot be denied merely because the exempted goods were not exported under bond, where export is undisputed and the omission is only procedural.

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