Export authorisation for sandalwood oil now requires auction provenance, origin certificates and physical verification before approval.
Export of Sandalwood Oil is restricted to manufacturer-exporters or merchant-exporters linked to licensed extraction units who procured material via state forest auctions and hold Certificates of Origin; authorisations are issued by DGFT after Exim Facilitation Committee review, valid one year without revalidation, and require submission of prescribed applications and supporting documents including export order/LC, Legal Procurement Certificate, Certificate of Physical Verification with transit permit, and originals for DGFT endorsement. Exports from imported sandalwood are prohibited.

Quarterly declaration requirement clarified: Form DVAT 51 fields relabeled to reflect quarterly transactions and correct amount column.
The circular clarifies that Form DVAT 51 must be read to reflect quarterly declarations: the phrase 'made during the year' in field 3 is to be read as 'made during the quarter', and the last column header in fields 11-16 'Amount of Value Added (Rs.)' is to be read as 'Amount (Rs.)', correcting drafting errors so the form aligns with the amended filing frequency for inter state transaction declarations.

Investment restrictions for securitised debt clarified: originator-level investment limits do not apply to securitised instruments.
Restrictions on debt securities under Clause 1 of Schedule VII to the SEBI (Mutual Funds) Regulations, 1996 do not apply at the originator level for investments in securitised debt; mutual funds' investments in mortgage backed and asset backed securities therefore need not be subject to originator level exposure caps. This clarification is issued to all registered mutual funds and AMFI under Regulation 77 of the SEBI (Mutual Funds) Regulations, 1996.

NAV upload deadline extended; delayed publications require press disclosure, written explanation to AMFI, and compliance reporting.
Mutual funds must upload scheme NAVs, including Fund of Funds, to AMFI and their own websites by a revised evening deadline; if NAVs are not available before the next business day a press release explaining the delay and expected publication timing is required; delays beyond the evening deadline require a written explanation to AMFI; bi monthly Compliance Test Reports must record days of non compliance with reasons and corrective actions.

Produce of animal husbandry includes livestock and meat; cash payments to producers avoid disallowance under section 40A(3).
The Board clarifies that the produce of animal husbandry under rule 6DD(f)(ii) includes livestock, meat, hides and skins; payments otherwise than by crossed cheque or crossed bank draft made to the producer of such products for their purchase are not subject to the twenty percent disallowance under section 40A(3) read with rule 6DD, but the exception does not apply where the seller is not the producer and is merely a trader, broker or middleman.

Concessional import duty on gold findings and mountings clarified - eligible under notification, misuse prevented by field instructions.
Concessional import duty applies to findings and mountings of gold and silver because the notification's explanation excludes only jewellery and foreign currency coins. Findings (small parts of jewellery) and mountings (structures to support studding) are within the scope of the relevant serial entries and eligible for the concessional rate; prior instructions were meant to prevent misuse by importing complete jewellery as findings or mountings.

Industrial cables classification clarified under Delhi VAT: HSN-listed industrial cables covered, excluding small-section non-industrial wires.
Entry No. 40 of the Third Schedule to the Delhi VAT Act is declared to cover items falling under HSN headings 8544.11, 8544.20, 8544.30, 8544.41, 8544.49, 8544.51, 8544.60 and 8544.70, but excludes non-industrial cables and wires having core cross-sectional area from 0.5 to 6.0 square millimetres that are meant for non-industrial use.

Extension of filing deadline for DVAT-51 and Central Declaration Forms permits late submission under specified VAT rules.
The Commissioner, under applicable Delhi VAT and Central Sales Tax rules, extended the deadline to 30 June 2006 for furnishing the reconciliation return in Form DVAT-51 for the quarter ended 31 December 2005, and likewise extended the deadline to 30 June 2006 for submitting the 'original' portion of Central Declaration Forms C, D, E I/E II and F for that quarter, directing departmental dissemination and publicity of the order.

Export eligibility for Red Sanders logs limited to auction purchasers; licences subject to application, buyer restrictions, and no resale.
Export of Red Sanders logs is permitted only for exporters who procured logs through Government of Andhra Pradesh auctions; such applicants must file the Aayaat Niryaat Form with supporting procurement documents at DGFT Headquarters. Exports are limited to designated foreign buyers, resale of logs is prohibited, a specified entity is generally barred but allowed a defined allocation where it participated in tenders for value added manufacture, and applications within the exemption period will be considered by the Export Facilitation Committee and may carry further DGFT conditions.

Overseas investment liberalisation expands guarantee permissions and eases disinvestment and proprietary investor rules under FEMA.
The circular liberalises overseas investment rules: guarantees under the Automatic Route may include corporate or personal guarantees by promoter, group or associate companies provided all commitments remain within the overall overseas investment ceiling, guarantees are not open ended and all guarantees are reported to RBI in Form ODR. Disinvestments in specified categories may proceed without prior RBI approval subject to 30 day reporting via the Authorised Dealer. Recognised proprietorship and unregistered partnership exporters may seek prior RBI approval to establish JVs/WOSs abroad under prescribed eligibility criteria.

Authorized operations include construction goods in SEZ unit approvals; Development Commissioner decides eligibility under Rule 27(2).
Authorized operations for SEZ units include setting up, operation, maintenance and expansion and may include goods required for construction of buildings; such goods can be included in the Letter of Approval (Form G). Any question whether goods or services are required for an authorized operation shall be decided by the Development Commissioner under the applicable rules.

Bond-cum-Legal Undertaking execution for SEZ developers clarified: state-issued stamp paper and local notarisation required, compliance emphasized.
Clarifies that the Bond-cum-Legal Undertaking in Forms D and H must be executed on non-judicial stamp paper purchased in the State where the SEZ or unit is located and must be notarised by a Notary Public registered in that State; existing developers/units are directed to execute the undertaking under the SEZ Rules by the applicable compliance date.

Trading restrictions in SEZs: trading units may only import for export and cannot procure from DTA.
Trading units in SEZs must confine trading to imports for export and a proviso shall be added to Form G clauses (i) and (iv) that a Unit having letter of approval for trading shall not procure goods from the DTA; this requirement applies to new proposals and existing trading units, whose letters of approval should be amended accordingly.

Line of Credit to DR Congo finances eligible Indian exports under Foreign Trade Policy while imposing declaration and commission rules.
Exim Bank's Line of Credit to the Government of the Democratic Republic of Congo finances eligible Indian exports subject to the Foreign Trade Policy. Shipments must be declared on GR/SDF forms, adhere to specified terminal utilization periods for project and supply contracts, and no agency commission is payable from the credit (exporters may use their own resources or EEFC balances for commission subject to prevailing rules). Directions are issued under FEMA and do not affect other statutory permissions.

Line of credit for export financing requires specified utilisation periods, GR/SDF shipment declarations and FEMA compliance by authorised banks.
A Line of Credit from Exim Bank to the Government of Ghana finances eligible Indian exports for rural electrification and a presidential office. Shipments must be declared on GR/SDF forms. Distinct terminal utilisation periods apply for project exports and other supplies. No agency commission is payable under the LOC, though exporters may use own funds or EEFC balances for commission subject to realisation and prevailing instructions. Authorised Dealer banks must notify exporter constituents. Directions are issued under statutory foreign exchange powers without prejudice to other legal permissions.

Line of credit for export finance sets documentation, commission payment rules and conditional reimbursement under foreign exchange law.
Exim Bank extended a Line of Credit to the Eastern and Southern African Trade & Development Bank to finance exports from India to its member countries, with specific deadlines for letter of credit opening and disbursement, mandatory declaration of shipments on prescribed export forms, and rules on payment and reimbursement of agency commission-permiting exporters to use own resources or EEFC balances, denying ordinary reimbursement, but allowing Reserve Bank consideration for limited commission reimbursement for after sales service exports subject to prior approval and payment within member countries.

CENVAT credit documentation change: endorsement of bill of entry by customs no longer required for availing credit.
Endorsement of the Bill of Entry by a Customs officer is dispensed with as a requirement for availing CENVAT (formerly MODVAT) credit; the CENVAT Credit Rules, 2004, and specifically Rule 9, set out the documents on the basis of which credit may be availed and do not provide for such endorsement. Public Notice No.35/95 is withdrawn and Para 17 of Public Notice No.85/99 is amended accordingly.

Endorsement of bill of entry no longer required for CENVAT credit under updated CENVAT Credit Rules.
Endorsement of a bill of entry by a customs officer is no longer a basis for claiming CENVAT credit because the CENVAT Credit Rules 2004 list the documents on which credit may be availed and do not include endorsement of the bill of entry; earlier public notices permitting endorsement are withdrawn or amended accordingly.

Excise classification of articles of wood clarified; duty applies only to goods falling under articles-of-wood headings.
Excise duty of 8% has been imposed on articles of wood under Notification No. 10/2006-C.E.; applicability is determined by the 8 digit tariff classification aligned with the 8 digit customs nomenclature and by the Explanatory Notes to Chapter 44, which limit "articles of wood" to goods falling within the chapter's article-of-wood headings (Headings 44.14 to 44.21).

Refund data correction: banks must update specified refund fields and install prescribed patches, then report implementation.
Banks may modify refund sequence number, Major Head code, PAN, name, amount and assessment year to correct OLTAS refund transmission errors; AO codes must be populated. Computer centres must take two full backups, download and execute prescribed FMX/REP files from the specified server directory with no users logged in, copy and rename/back up files on the file server, and ensure CIN is added to the ts_clean_challan query. A compliance report on implementation is required and prior OLTAS instructions must already be implemented.