Compounded levy scheme [Rule 15 of the Central Excise Rules, 2002]:

Central Government is empowered to specify, by notification, the goods in respect of which an assessee shall have the option to pay the duty of excise on the basis of specified factors relevant to production of such goods (size of equipment employed, number and the types of machines used for manufacture etc.) at the specified rates. The prescribed duty has to be paid by the manufacturer for the specified period. The advantage of this scheme is that it frees the manufacturer from observing day to day central excise formalities and maintenance of detailed accounts after making the lump sum periodic payment. Thus, small manufacturers generally benefit from this scheme [Sub-rule (1)].

The Central Government has been empowered to specify the procedure for making an application for availing of the special procedure for payment of duty, the abatement, if any, that may be allowed on account of closure of a factory during any period, and any other matter incidental thereto [Sub-rule (2)].

The Central Government has notified stainless steel pattas/patties and aluminium circles for the purpose of compounded levy scheme. These articles are not eligible for SSI exemption.