Excise is levied on the finished product, not on ordinary inputs, but certain goods sit so close to duty that the code draws explicit boundaries for industry. Raw materials that enter a dutiable production process, packaging for the finished item and products destined for approved uses can pass free of the excise charge where the conditions are met. The exemption is conditional on use. A material exempt at removal must reach the approved process, and records must show the movement from the supplier through the factory to the finished goods. Freedom from duty at the gate converts into a claim of the same value if the input appears to have moved elsewhere, and the department audits the usage chain rather than taking the exemption at face value. Industry plans around the relief because the input value is large for heavy users. Approved units maintain a dedicated register of exempt receipts, tagged against the production runs they serve, so the exemption is provable line by line at the next verification. That discipline costs minutes per consignment and converts a privilege into an entitlement the firm can defend without debate when the officer arrives.