Input duty credit refund under Rule 57F(3) depends on duty paid on inputs, not final product duty.

Refund of accumulated input duty credit under Rule 57F(3) was to be determined by reference to the duty actually paid on the inputs used in exported goods, not by the duty payable on the final product. The rule permitted cash refund where input credit could not otherwise be adjusted, and the refundable amount was confined to the credit taken on inputs. As the department failed to show any defect in the assessee's computation or support, the refund was sustained and the Revenue's challenge failed.

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Issues: Whether refund of credit taken on inputs used in manufacture of export goods under Rule 57F(3) was to be limited by the duty payable on the final product, or was to be determined with reference only to the duty paid on the inputs.

Analysis: The refund claim was based on the duty actually paid on inputs used in the exported product. The duty payable on the final product was held to be irrelevant for this purpose. The rule permits cash refund of available input duty credit where such credit cannot be otherwise adjusted, and the refundable amount is relatable only to the duty taken on inputs. Since the department did not establish that the assessee's calculation of input duty was or unsupported, no legal infirmity was found in the order allowing refund.

Conclusion: The refund was correctly allowed on the basis of input duty credit and not limited by the duty on the final product; the Revenue's challenge failed.

Final Conclusion: The assessee's refund claim was sustained and the Revenue's appeals were rejected.

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