Rebate on exported duty-paid goods may not be denied for missing ARE-1 copies when collateral evidence proves export.

Rule 18 rebate under the Central Excise Rules, 2002 and Notification No. 19/2004-CE(NT) depends on proof that duty-paid goods were actually exported, and procedural documents are meant to support that verification. Rebate cannot be denied solely because the original and duplicate ARE-1 forms were not produced if export is otherwise established by reliable collateral evidence. Shipping documents, mate receipt, bill of lading, container details and bank realisation evidence may together prove export and justify grant of rebate despite the missing ARE-1 copies.

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Issues: Whether rebate under Rule 18 of the Central Excise Rules, 2002 could be denied solely for non-submission of the original and duplicate copies of ARE-1 when export of duty-paid goods was otherwise established by collateral evidence.

Analysis: The rebate claim had been rejected on the ground that the original and duplicate ARE-1 forms were not produced, though the export documents and supporting evidence showed that the goods had been cleared, exported and the sale proceeds realized. The applicable rebate scheme under Rule 18 and Notification No. 19/2004-CE(NT) is intended to grant relief on proof of export, and procedural requirements are meant to facilitate verification of that substantive condition. Where export is otherwise satisfactorily established, the absence of the ARE-1 originals does not by itself justify denial of rebate. The authority accepted that collateral evidences such as shipping documents, mate receipt, bill of lading, container details and bank realization certificate could establish the fact of export.

Conclusion: Rebate could not be denied merely for non-submission of the original and duplicate ARE-1 forms, and the claim was rightly allowed on the basis of collateral evidence.

Ratio Decidendi: In rebate matters, procedural non-compliance cannot defeat the substantive benefit when actual export of duty-paid goods is proved by reliable collateral evidence.

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