Notification No. 103 dated 27^th December 1993 (As amended by 21/97, Notification No. 35 dated 24th 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 rags, trimmings and tailor cuttings arising in the course of manufacture of ready-made garments falling within the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), and produced or manufactured in 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 cutting 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 3^rd March 1976, or as the case may be, by the Development Commissioner.