Rebate under Central Excise rules cannot be denied by adding SION compliance when the notification imposes no such condition.

Rule 18 rebate under the Central Excise Rules, 2002 can be regulated only by the conditions, limitations and procedure prescribed in the governing notification. The High Court held that where the assessee had complied with Notification No. 21/2004-CE(NT), the revisional authority could not import an additional requirement of adherence to SION norms from the Export and Import Policy, because neither the rule nor the notification imposed that condition. The added condition was therefore invalid, and the revisional interference with the sanctioned rebate was set aside to that extent in favour of the assessee.

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Issues: Whether rebate under Rule 18 of the Central Excise Rules, 2002 could be denied or modified by importing the requirement of adherence to SION norms of the Export and Import Policy when such requirement was not prescribed in the rule or the governing notification.

Analysis: Rule 18 authorises rebate of duty paid on exported excisable goods or on materials used in their manufacture, but only subject to the conditions, limitations and procedure specified in the relevant notification. The petitioner had complied with the conditions contained in Notification No. 21/2004-CE(NT) dated 06.09.2004. Since Rule 18 and the notification did not require compliance with SION norms, the revisional authority could not add that further condition while interfering with the rebate already sanctioned.

Conclusion: The requirement of SION norms was not a valid condition for grant of rebate, and the revisional order was set aside to that extent in favour of the assessee.

Ratio Decidendi: Rebate under Rule 18 of the Central Excise Rules, 2002 can be regulated only by the conditions and procedure prescribed in the governing notification, and no additional condition not found in the rule or notification can be imposed.

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