Modvat credit refund allowed on proof of export through shipping documents despite non-compliance with AR-4 procedure.

Refund of Modvat credit on inputs used in exported finished goods was held admissible where export was established by GP-2, shipping bill, bill of lading and export invoice, even though the AR-4 or AR-4A procedure was not followed. The Tribunal noted that the adjudicating authority did not dispute the fact of export and that the relevant notification accepted documentary proof such as a shipping bill or bill of lading to establish export. Relying on its earlier view that no further requirement arises once the prescribed export documents are produced, it accepted the refund claim and rejected the Revenue's challenge.

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Issues: Whether refund of Modvat credit on inputs used in exported finished goods was admissible when export was evidenced by GP-2, shipping bill, bill of lading and export invoice, and the export procedure under AR-4 or AR-4A was not followed.

Analysis: The goods were shown to have been exported and the adjudicating authority had not disputed the fact of export. The relevant notification accepted documentary proof such as bill of lading or shipping bill for establishing export. In the respondents' own earlier matter, the Tribunal had already held that refund of credit was admissible when the prescribed documents proved export and nothing further was required. The same reasoning applied here because the record contained the necessary export documents.

Conclusion: Refund of Modvat credit was admissible, and the Revenue's challenge failed.

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