Merchant export by paying excise duty

Hello, We are a exporter based in Mumbai and are procuring pharmaceutical raw material from manufacturer based in Vapi. We are ready to pay the excise duty while making payment to the manufacturer but manufacturer is asking for CT1 to be given. They have asked the excise department in their range and they have said CT 1 is mandatory even if exporter is paying excise duty. How can I solve this issue? Is there a notification which says that I can still export by paying the excise duty and without submitting the CT1. Thank you!