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Companies in northeast get excise exemption

The Union government has granted exemption of excise duty to companies which are based in the Northeast of India. Companies which are planning to launch operations in the regions can also avail the benefit.

The department of revenue has decided that a few selected areas in Assam and Tripura will be granted exemption from excise duty. The exemption will be valid for products manufactured in other states of the region.

The exemption, okayed last week, will be valid for ten years from the publication of the notification in the official gazette or from the date of commencement of production, whichever is later.

A few years ago, a similar exemption on certain products was granted to Sikkim. However, the move proved controversial as several companies resorted to corrupt practices to evade excise. They produced goods in other states but marked them as 'manufactured in Sikkim'.

Compiled from media reports

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