NO, on fulfillment of NFEP THE eou other than GEM AND JEWELLARY ARE ALLOWED TO SELL GOODS INCLUDING REJECTS UP TO 5% OF FOB VALUE OF EXPORTS, WASTE, SCRAPS, BY PRODUCTS AND SERVICES IN DTA UP TO 50% OF FOB VALUE OF EXPORTS.
FOR MORE INFO:- http://www.smeindia.net/export_schemes/DOCS/B-1/EXPORT%20ORIENTED%20UNIT%20SCHEME.pdf