EOU scrap disposal limits: excess waste beyond prescribed percentage attracts duty equal to that on the mother material.

Permissible disposal of waste/scrap by 100% EOUs follows Annexure V norms of Appendix 19 of the Import Export Policy, subject to a maximum of 25%. If waste/scrap exceeds 25%, the excess quantity is charged an amount equal to the duty leviable on the mother material from which the scrap arose under the proviso to Section 3 of the Central Excises & Salt Act, 1944.

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