Duty payable on value addition established as basis for excise exemption, with refund and CENVAT credit procedures defined. Notification replaces prior measure with duty payable on value addition, prescribing tabled percentage rates by chapter/description and capping payable duty at the cash duty actually paid (excluding CENVAT). It requires monthly submission of duty and CENVAT utilisation statements to the Assistant/Deputy Commissioner, who shall verify and refund the duty payable on value addition; manufacturers may instead elect to take computed credit in an account current subject to reporting, verification, reversal of excess credit, and recovery mechanisms. A process is provided to seek a Commissioner-fixed special rate based on audited prior-year value addition with provisional refunds and subsequent adjustments.