Rule 5 CENVAT refund for exported services does not require one-to-one input correlation and was treated as admissible.

Refund of unutilized CENVAT credit under Rule 5 for exported services is governed by the prescribed formula, and one-to-one correlation between each input service and a specific export transaction is not required. Credit taken before the later time-limit restriction could not be denied on limitation grounds, and the refund claim filed within one year from export was not rejected on that basis. The unjust enrichment objection was not accepted on the facts, and the view that credit admissibility could not be examined in refund proceedings did not prevail in these circumstances. The claim was therefore treated as admissible with consequential relief.

---

---

Issues: Whether refund of unutilized CENVAT credit under Rule 5 of the CENVAT Credit Rules, 2004 could be denied for want of one-to-one correlation between input services and exported services, and whether the claim could be rejected on limitation or related objections.

Analysis: The appellant exported services and availed CENVAT credit during the relevant period on input services. Rule 5 operated on the prescribed formula applying the net CENVAT credit to export turnover and did not require direct matching of each input service with a particular export transaction. The credit had been taken before the later restriction on time limit for availment, so its availment could not be disputed on limitation. The claim was filed within one year from the date of export of services, and the objection of unjust enrichment was not accepted on the facts found. The objection that admissibility of credit could not be examined in refund proceedings did not prevail in the circumstances of the case.

Conclusion: The refund claim was held admissible and the assessee was entitled to sanction of the unutilized CENVAT credit with consequential relief.

Ratio Decidendi: Refund of unutilized CENVAT credit for export of services under Rule 5 is to be granted on the formula basis without insisting on one-to-one correlation between input services and exports, and a claim cannot be rejected merely because the credit related to an earlier period when its availment was otherwise permissible.

---