EXCISE DUTY EXEMPTION FOR SIKKIM EXTENDED

To give a fillip to the industrial development of North Eastern Region (NER), Department of Industrial Policy and Promotion (DIPP) had announced North East Industrial Policy (NEIP) in 1997 which was valid till 31.3.2007. Similarly, there is an industrial policy and an excise duty exemption scheme for the State of Sikkim. A revised North East Industrial and Investment Promotion Policy, 2007 (NEIIPP, 2007) has come into effect from 01.04.2007 which inter alia, provides for excise duty exemption scheme for industrial units located in the North Eastern Region including Sikkim. Accordingly, a Notification has been issued today. As per the Notification, the exemption will be available for a period of ten years for new units and existing units undertaking substantial expansion, irrespective of their location in the North East or Sikkim. However, this exemption will not apply to specified goods namely, pan masala, cigarettes and other tobacco products, plastic carry bags of less than 20 microns and petroleum products produced by petroleum oil or gas refineries. Simultaneously, another notification has also been issued today to carry out certain amendments in the excise duty exemption schemes for the North Eastern region.