Notification No. 13 dated 2^nd June 1998 (As amended by Notification No. 11 dated 1^st March 2002, Corrigendum dated 1^st March 2002)

In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the finished products, rejects and waste or scrap specified in the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), produced or manufactured, in a hundred per cent, export-oriented undertaking or a free trade zone wholly from the raw materials produced or manufactured in India, from so much of the duty of excise leviable thereon under section 3 of the said Central Excise Act, as is in excess of the amount equivalent to thirty percent of the aggregate of the duties of customs, which would be leviable under section 12 of the Customs Act, 1962 (52 of 1962) read with any other notification for the time being in force issued under sub-section (1) of section 25 of the said Customs Act, on the like goods produced or manufactured outside India if imported into India, subject to the following conditions, namely: -

(a)    such finished products, if manufactured and cleared by a unit other than a hundred percent, export-oriented undertaking or a unit in a free trade zone, are wholly exempt from the duties of excise or are chargeable to Nil rate of duty; and

(b)    the finished products, rejects and waste or scrap are allowed to be sold in India under and in accordance with the provisions of sub-paragraphs (a), (b), (c), (d) or (f) of paragraph 9.9 or of paragraph 9.20 of the Export and Import Policy 1 April, 1997-31 March, 2002.