Mandatory export rebate conditions require strict ARE-I and self-sealing compliance before rebate can be allowed.

Rebate of duty under Rule 18 of the Central Excise Rules, 2002 is available only where the conditions in Notification No. 19/2004-CE(NT) are strictly complied with, including export under Central Excise supervision or self-sealing and timely verification and submission of ARE-I copies. Where goods are cleared without ARE-I certification at removal and the prescribed procedure is not followed, the notification's requirements are treated as mandatory and go to the substance of the rebate scheme because they establish correlation between cleared and exported goods. On that basis, rebate is not admissible when the statutory and procedural conditions are not met.

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Issues: Whether rebate of duty on exported goods was admissible despite non-compliance with the ARE-I procedure and self-sealing requirements prescribed under the rebate notification.

Analysis: Rebate under Rule 18 of the Central Excise Rules, 2002 was claimed subject to Notification No. 19/2004-CE(NT) dated 06.09.2004. The notification required export of goods either under Central Excise supervision or under self-sealing, with ARE-I copies duly verified and submitted within the stipulated time. The goods were cleared from the factory without ARE-I certification at the time of removal, and the prescribed procedure was not followed. The requirement was treated as a statutory condition going to the substance of the rebate scheme, because compliance establishes correlation between the goods cleared from the factory and the goods exported.

Conclusion: Rebate was not admissible, as the procedural and substantive conditions of the notification were not complied with.

Ratio Decidendi: A rebate or concessional relief granted under a conditional notification cannot be allowed unless the mandatory conditions and prescribed procedure are strictly complied with.

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