Exemption to rags, trimmings and tailor cuttings of readymade garments manufactured in a

100% EOU or a free trade zone and allowed to be sold in India.

27-12-1993
Notification No. 103/93-Central Excise
In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excises
and Salt Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the
public interest so to do, hereby exempts rags, trimmings and tailor cuttings arising in the course
of manufacture of readymade garments falling within the Schedule to the Central Excise Tariff
Act, 1985 (5 of 1986), and produced or manufactured in a hundred per cent export-oriented
undertaking or a free trade zone and allowed to be sold in India under and in accordance with the
provisions of the Export and Import Policy, from the whole of the duty of excise leviable thereon
provided that the percentage of waste material in the form of rags, trimmings and tailor cuttings
does not exceed the percentage fixed in this regard by the Board of Approvals for hundred per
cent export oriented undertakings appointed by the Government of India in the former Ministry
of Industry and Civil Supplies (Department of Industrial Development) No. S.O.
163(E)/RLIU/10(2)76, dated the 3rd March, 1976 or as the case may be, by the Development
Commissioner.
Explanation. - For the purposes of this notification, "Export and Import Policy" means
Export and Import Policy, 1st April, 2002 - 31st March, 2007, published by the Government of
India in the Ministry of Commerce and Industry vide notification No.1/2002-07, dated 31st
March, 2002, as amended from time to time.'.
Notification No. 103/93-C.E., dated 27-12-1993 as amended by Notification No. 21/97-C.E.,
dated 11-4-1997.and No.35/2002 dated 24-4-2002