Section 3(2) in The Taxation Laws (Amendment) Act, 2003
(2)This section applies to any undertaking which fulfils the following conditions, namely:-(a)it manufactures or produces the eligible articles or things without the use of imported raw materials;(b)it is not formed by the splitting up, or the reconstruction, of a business already in existence: Provided that this condition shall not apply in respect of any undertaking which is formed as a result of the re- establishment, reconstruction or revival by the assessee of the business of any such undertaking as is referred to in section 33B, in the circumstances and within the period specified in that section;(c)it is not formed by the transfer to a new business of machinery or plant previously used for any purpose.Explanation.- The provisions of Explanation 1 and Explanation 2 to sub- section (2) of section 80-I shall apply for the purposes of this clause as they apply for the purposes of clause (ii) of sub- section (2) of that section;(d)ninety per cent. or more of its sales during the previous year relevant to the assessment year are by way of exports of the eligible articles or things;(e)it employs twenty or more workers during the previous year in the process of manufacture or production.
