SSI Units - New Exemption Scheme - 38/97 - Central Excise - Tariff

Excise duty exemption scheme for small-scale units: preferential reduced rates for initial clearances with conditions.

The notification grants a reduced-duty exemption for specified manufactured goods of small-scale units by applying reduced proportions of normal excise duty to the initial bands of aggregate clearances in a financial year. Manufacturers must file an irrevocable written option and prescribed particulars; clearances prior to option are included in the aggregate. Aggregation applies across factories and manufacturers, subject to a preceding-year turnover ceiling. Specific clearances and goods (including intra-factory inputs and certain branded goods) are excluded or treated as fully exempt, and limited brand-name exceptions and valuation definitions are prescribed.