Section 5A - Power to grant exemption from duty of excise

Exemption from excise duty: central government may notify conditional or absolute relief for specified goods, subject to limits.

The Central Government may, by notification, exempt specified excisable goods absolutely or subject to conditions when necessary in the public interest, with ordinary exclusions for goods from free trade zones, special economic zones, and hundred per cent export-oriented undertakings unless expressly included. Absolute exemptions from the whole duty relieve the manufacturer from payment. Special orders may grant case-specific exemptions; explanations to clarify scope may be inserted within one year and operate as part of the original instrument. Partial exemptions may impose duty by an alternative form or method, not exceeding the statutory duty.