Circular No. 120/01/2010-ST dated the 19th January, 2010 has been issued on the problems faced by exporters in availing refund of excess credit. The salient features are:

1.There cannot be different yardsticks for establishing the nexus for taking of credit and for refund of credit.  Even if different phrases are used under different rules of CENVAT Credit Rules, they have to be construed in a harmonious manner.
2. The phrase, “used in” mentioned in Notification No. 5/2006-CX (NT) to show the nexus also needs to be interpreted in a harmonious manner.   The following test can be used to see whether sufficient nexus exists.  In case the absence of such input/input service adversely impacts the quality and efficiency of the provision of service exported, it should be considered as eligible input or input service.
3. The simplified scheme of self-certification [Notification No. 17/2009-ST] whereunder an exporter or his Chartered Accountant is required to certify the invoices about the co-relation and the nexus between the inputs/input services and the exports is extended to pending claims under Not 41/2007.
4. Similar scheme should be followed for refund of CENVAT credit under notification No. 5/2006-CE (NT).  The procedure prescribed herein should be followed in all cases including the pending claims with immediate effect.  
5. The exporter should, alongwith the refund claim, file a declaration containing the prescribed details.
6. In case there is a doubt about the correctness of the claim of CENVAT credit on any service, the undisputed amount may be refunded and the balance claim may be decided after following the dispute settlement process
7. There should not be any objection in allowing refund of credit of the past period in subsequent quarters.
8. In case of service providers exporting 100% of their services, the refund of CENVAT credit, irrespective of when he has taken the credit, should be granted if otherwise in order.    Such exporters may be asked to file a declaration to the effect that they are exporting 100% of their services, and, only if it is noticed subsequently that the exporter had provided services domestically, the proportional refund to such extent can be demanded from him
9. In case of incomplete invoices, the department should take a liberal view in view of various judicial pronouncements by Courts.

For details please see Circular No. 120/01/2010-ST in http://www.servicetax.gov.in/st-cirmainpg.htm