Exemption for value addition duty reduces excise liability for Jammu and Kashmir units, subject to table rates, procedures and compliance. Exemption exempts from excise duty an amount equivalent to duty payable on value addition for goods cleared from units in Jammu and Kashmir, with percentage rates set by a Table tied to tariff chapters and inputs. Claimants must submit monthly statements, utilise CENVAT credit first where applicable, and may elect account-current credit instead. A special rate reflecting actual value addition may be fixed on application supported by audited calculations; eligibility is limited to new units and qualifying expanded existing units for up to ten years, with specified exclusions and recovery mechanisms for irregular credits.