Excise duty exemption enables refund mechanism and full cenvat credit for eligible units under the scheme. Exemption operates by refunding the portion of excise duty paid in cash to eligible new or substantially expanded manufacturing units for a limited period; manufacturers must first pay duty and then claim refund, while Cenvat Credit rules are adjusted so users of inputs and capital goods receive full credit including refunded amounts. Refunds should be processed promptly, with provisional payments by the fifteenth of the subsequent month where verification is pending, and pre-audit of large claims should not delay provisional relief. The notifications apply to factory clearances only and administrative guidance includes consultation on commencement of production and examination of unused expanded capacity.