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2018 (5) TMI 1561 - AT - Central ExciseRefund claim - rejection on the ground that some input goods or services cannot be deemed to be used for providing the output services - Held that: - Rule 5 of CCR has a formula for sanction of refund of CENVAT credit when goods or services are exported. In this scheme, proportionate refund on the CENVAT credit availed by the appellant during the particular period on input services or goods is available whether or not these goods and services are related to the exported output goods or services. Once input credit is allowed, the exporter is entitled to refund of proportionate amount of CENVAT credit. If the export turnover of the exporter is say 40% of his total turnover during the period, 40% of the net CENVAT credit can be refunded to them. It does not matter which components of the CENVAT credit pertains to which input goods or services. Even if one input service is exclusively used for export and another used for their domestic transactions, the exporter is entitled only the proportionate amount is total CENVAT credit. If the assessee has, in fact availed CENVAT credit on input goods or services wrongly which needs to be recovered, then such amount should have been recovered through a notice under Rule 14 of CENVAT Credit Rules, 2004 and any other relevant provisions and following the appropriate procedure. Rule 5 of CENVAT credit Rules is not an instrument for the purpose. It is proper to remand the matter back to the Deputy Commissioner to decide the refund amount applying the formula given in Rule 5 of CENVAT Credit Rules.
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