Export refund denial for non-realisation of proceeds set aside after verification showed INR payment matched the invoices.

Partial refund was denied on the ground that export proceeds had not been realised within nine months, but the transaction trail later verified that supplies to Nepal were paid for in INR and matched with the sale invoices. Once that verification confirmed receipt of the export invoice amounts in INR, the factual basis for sustaining the partial rejection no longer survived. The rejection of the part refund was therefore set aside, and the matter was remitted for limited reconsideration in accordance with law.

---

---

Issues: Whether the rejection of the petitioner's part refund on the ground of non-realisation of export proceeds was sustainable and whether the matter required reconsideration.

Analysis: The refund was denied only to the extent that export proceeds were said not to have been realised within nine months. The petitioner's case was that the supplies were made to Nepal and the consideration was payable and received in INR. Upon judicial direction, the department verified the transaction trail and confirmed that the export invoice amounts had been received in INR and matched with the sale invoices. In light of this verification, the basis for sustaining the partial rejection no longer survived, and the matter warranted limited reconsideration in accordance with law.

Conclusion: The rejection of the part refund was set aside and the matter was remitted for limited reconsideration.

---