Notification No. 2 dated 4^th January 1995 (As amended by 76/95, 100/95, 21/97, 23/97, 4/98, 26/98, 29/98, 25/99, 38/99, 11/00, 29/2001, Notification No. 35 dated 24^th June 2002)

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 all excisable goods (hereinafter referred to as the said goods) specified in the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) and produced or manufactured in a hundred percent export oriented undertaking or a free trade zone or a Electronic Hardware Technology Park (EHTP) unit or a Software Technology Parks (STP) unit and allowed to be sold in India under and in accordance with the provisions of sub-paragraphs (a), (b), (d) and (h) of paragraph 6.8 of the Export and Import Policy, from so much of the duty of excise leviable thereon.

(i)������� Paragraph 102 and 114 of the Export and Import Policy, 1^st April 1992-31 March 1997, in the case of hundred percent export oriented undertaking or a free trade zone; or

(ii)������ Notification of the Government of India in the Ministry of Commerce No. 4(RE-95)92-97, dated the 30^th April, 1995.

(iii)������ Notification of the Government of India in the Ministry of Commerce No. 5/(RE-95)92-97, dated the 30^th April, 1995.

from so much of the duty of excise leviable thereon under section 3 of the said Central Excises and Salt Act as is in excess of the amount calculated at the rate of fifty per cent of each of the duties of Customs, which would be leviable under the Customs Act, 1962 (52 of 1962) or under any other law for the time being in force, read with any notification for the time being in force in respect of the duty so chargeable, on the like goods produced or manufactured outside India if imported into India:

Provided that the amount of duty payable in accordance with this notification in respect of the said goods shall not be less than the duty of excise leviable on the like goods produced or manufactured outside the hundred per cent export-oriented undertaking or free trade zone or Electronic Hardware Technology Park (EHTP) unit or Software Technology Parks (STP) unit which is specified in the said Schedule, read with any other relevant notification issued under sub-rule (1) of rule 8 of the Central Excises Rules, 1944, or sub-section (1) of section 5A of the said Central Excise Act.

Provided further that nothing contained in the above proviso shall apply to the goods which are chargeable to nil rate of duty leviable under section 12 of the Customs Act read with any other notification for the time being in force issued under sub-section (1) of section 25 of the said Customs Act.

Provided also that the exemption under this notification shall not be availed until the Assistant Commissioner is satisfied that the said goods, including software, rejects, scrap, waste or remnants, -

(a)��� being cleared for home consumption, other than scrap, waste or remnants are similar to the goods which are exported or expected to be exported from the units during specified period of such clearance in terms of Export and Import Policy.

(b)��� the total value of such goods being cleared under paragraph 6.8 of the Export and Import Policy, for home consumption from the unit does not exceed 50% of the free on board value of exports made during the year (starting from 1^st April of the year and ending with 31^st March of next year) by the said unit; and

(c)��� the balance of the production of the goods which are similar to such goods under clearance for home consumption, is exported out of India or disposed of in terms of paragraph 6.9 of the Export and Import Policy.

Provided also that the clearance of goods for home consumption under paragraphs 6.8(b) and 6.8(h) shall be allowed only when the unit has fulfilled the minimum Net Foreign Exchange Earning as a Percentage of Export (NFEP) prescribed in Appendix-l of the Export and Import Policy:

Provided also that the clearance of goods for home consumption under paragraph 6.8(a) in excess of 5% of Free on Board value of exports made by the said unit during the year (starting from 1^st April of the year and ending with 31^st March of the next year) shall be allowed only when the unit has fulfilled the minimum Net Foreign Exchange Earning as a Percentage of Exports (NFEP) prescribed in Appendix-l of the said Policy.