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3.1 Learned Counsel for the appellant further submitted that the formula prescribed under said rule is not applicable in the present case as the appellant is 100% exporter and the entire turnover pertains to the export of services. The formula as prescribed under the law.

Refund amount = (Export turnover of goods+ Export turnover of services) x Net CENVAT credit________________________________ Total turnover This formula is intended to restrict the refund of tax paid on input services to the extent of export services, effectively excluding the refund of tax paid on domestic services. The learned counsel submitted that since the appellant is a 100% exporter, the application of the formula would not result in any advantage to the Department, as the appellant was eligible to claim a full refund of the tax paid on input services. The Department's application of the formula is erroneous and leads to illogical outcomes, including the denial of rightful refunds to the appellant in quarters where no export receipts are collected. This interpretation not only defies the legislative intent behind the formula but also undermines the principle of refund eligibility for exporters. The refusal to grant CENVAT credit to service exporters would frustrate the underlying objective of the government's export policies, which aims to incentivize and support exports.

7 ST/51033/2020 down in terms of clause (e) of paragraph 2 of Notification No.27/2012-CE(NT) dated 18-06-2012. As per the rules, the export turnover of service is restricted to only that value which relates to receipt of payment and appellant has not received any advance, as reported in the impugned order. Thus, only the services for which payments were received are covered by export turnover. 4.1 Learned Authorized Representative further submitted that for arriving at the export turnover, the adjudicating authority had not considered such invoices whose export proceeds were not realised in that particular quarter. The appellant in his appeal has contended that their entire turnover is export turnover, and no other services is provided in domestic tariff area, hence, export turnover should be considered for invoices issued for computing and allowing refund. The Learned Authorized Representative submitted that the appellant has misunderstood that there is no difference between export and total turnover and whole of the input value is eligible amount for refund. Learned AR stated that even if the total turnover of the appellant relates to export, it does not mean that there is no difference between export and total turnover, and the Appellant was required to file refund claim under Form- A appended to the Notification No. 27/2012 CE-NT dated 18.06.2012 by calculating the Export turnover of services as determined in accordance with clause (D) of sub-rule (1) of rule 5 of the Cenvat Credit Rules, 2004. Even if whole of the turnover of the appellant is export turnover, it cannot substitute 'Export Turnover' with the billed amount, as the Export Turnover for a particular quarter depends upon the realisation of export proceeds of exported services 8 ST/51033/2020 only as per Rule 5(1) (D) of Cenvat Credit Rules, 2004. In view of the above, the contention of the appellant that since whole of their turnover is export turnover their impugned claim should be allowed is not tenable. The refund amount has been computed correctly by the Adjudicating Authority in the impugned order-in-orginal.

Refund amount = (Export turnover of goods+ Export turnover of services) x Net CENVAT credit----------------------------------------

Total turnover Where,-

(A) "Refund amount" means the maximum refund that is admissible;

(B) "Net CENVAT credit" means total CENVAT credit availed on inputs and input services by the manufacturer or the output service provider reduced by the amount reversed in terms of sub- rule (5C) of rule 3, during the relevant period; (C) "Export turnover of goods" means the value of final products and intermediate products cleared during the relevant period and exported without payment of Central Excise duty under bond or letter of undertaking;

(D) "Export turnover of services" means the value of the export service calculated in the following manner, namely:-

Export turnover of services = payments received during the relevant period for export services + export services whose provision has been completed for which payment had been received in advance in any period prior to the relevant period 10 ST/51033/2020

- advances received for export services for which the provision of service has not been completed during the relevant period;