New Delhi: The government has restored excise exemption to hand processing and ball or roller bearing sectors in order to boost the small scale industry.

This follows an announcement made by Finance Minister Jaswant Singh at the SSI annual national convention in August.

The Finance Ministry has through a recent notification now restored the pre-budget exemption of both basic and additional excise duties in respect of woven fabrics of cotton and man-made fibres subjected to 12 and seven specified hand processes.

Excise duty has also been withdrawn in respect of woven fabrics of cotton subjected to open air stentering by an independent textile processor.

The exemption would however be available subject to the condition that the specified processes are carried out in a factory which does not have the facilities including plant and equipment for carrying out bleaching, dyeing or printing or any more of the processes with the aid of power or steam.

Government has also restored the Rs 1crore excise exemption available to ball or roller bearing, which was withdrawn in the Union budget in 2001.

The Finance Ministry notification said, "suitable amendments have also been made so that the clearances already made during this financial year are taken into account when computing the exemption limit of Rs 1crore".

It, however, clarified that no refund can be claimed for any duty paid prior to September 6.

PTI