Export rebate cannot be denied for curable procedural lapses when substantive eligibility is otherwise established.

Export rebate of duty paid on inputs used in exported goods cannot be denied where the substantive conditions are satisfied and the department does not dispute the use of duty-paid inputs or the correctness of the input-output ratio. Prior approval of the input-output ratio before export and self-certification on export documents were treated as procedural requirements, and their absence was held to be a curable technical lapse. The rebate claim was therefore allowed despite non-compliance with those formalities, and the revision applications failed.

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Issues: Whether rebate of duty paid on inputs used in exported goods could be denied for non-compliance with procedural requirements such as prior approval of input-output ratio and self-certification on export documents.

Analysis: The claim was governed by Rule 18 of the Central Excise Rules, 2002 read with Notification No. 21/2004-C.E. (N.T.) dated 06.09.2004, and the procedural requirement of self-certification arose under Notification No. 42/2001-C.E. (N.T.) dated 26.06.2001. The material facts showed that the goods were exported, the duty-paid inputs were used in the exported goods, and the department did not dispute the substantive eligibility or the correctness of the input-output ratio. The omission in filing approval before export and the absence of self-certification were treated as procedural defects. The substantial benefit of rebate could not be denied merely for such technical lapses.

Conclusion: The rebate claim was rightly allowed and the revision applications failed.

Ratio Decidendi: Export rebate cannot be denied when the substantive conditions are satisfied and the breach is confined to curable procedural requirements.

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