Inclusion of pre-delivery inspection and after-sales service costs in vehicle assessable value clarified; corrigendum and trade notice directed.
The instrument clarifies that Pre-Delivery Inspection (PDI) charges and costs of after-sales services pertain to the assessable value of motor vehicles, and corrects the cited circular references in the earlier Board circular. It directs that the corrigendum be communicated to field formations, a trade notice issued for the benefit of the trade, and that receipt of these instructions be acknowledged.

Notification issuance under Section 11C suspends coercive recovery during survey, ensuring uniform enforcement practice for field formations.
When a survey is floated to examine or issue a Notification under Section 11C, coercive measures for recovery of past arrears or duties shall not be taken; field formations must be informed of this uniform directive and acknowledge receipt.

Cenvat credit restriction prevents diversion of input credit from exempted North East production to pay duty on other products.
CENVAT credit of duty paid on inputs used in manufacture of final products cleared after availing the North-East exemptions may be utilised only for payment of duty on products cleared under those same exemptions. Refunds under the North-East scheme are limited to the duty paid less the amount of CENVAT credit availed in respect of inputs used for goods cleared under the corresponding exemption, thereby preventing diversion of input credit to pay duty on other products and disallowing excess refunds.

Excise duty exemption enables refund mechanism and full cenvat credit for eligible units under the scheme.
Exemption operates by refunding the portion of excise duty paid in cash to eligible new or substantially expanded manufacturing units for a limited period; manufacturers must first pay duty and then claim refund, while Cenvat Credit rules are adjusted so users of inputs and capital goods receive full credit including refunded amounts. Refunds should be processed promptly, with provisional payments by the fifteenth of the subsequent month where verification is pending, and pre-audit of large claims should not delay provisional relief. The notifications apply to factory clearances only and administrative guidance includes consultation on commencement of production and examination of unused expanded capacity.

Inclusion of PDI and after sales service: PDI and free after sales service excluded from assessable value; prior circulars withdrawn.
Pre delivery inspection charges and dealer provided free after sales service during warranty shall not be included in the assessable value of motor vehicles for central excise; earlier Circular Nos. 355/71/97 CX and 435/1/99 CX are withdrawn for the pre legislative change period following dismissal of department appeals, while a separate Board clarification governs the post change period. Administrative instructions to inform field formations and issue a trade notice are directed.

Excise duty on processed textile fabrics: market bought raw materials deemed duty paid so concessional aggregate excise applies.
Textile fibres or yarns bought from the market are deemed to have had appropriate duty paid; therefore processed woven textile fabrics manufactured in a continuous process by a composite mill or by a manufacturer who processes and weaves within the same factory will attract an aggregate excise duty of 12% ad valorem. Unprocessed woven fabrics produced and consumed captively within the composite mill are exempt provided appropriate duty is paid on the processed fabrics as required by the captive consumption exemption.

Inclusion of interest on deferred sales tax: such interest is not additional consideration and is excluded from assessable value.
Interest earned by a manufacturer on deferred sales tax under a State incentive does not amount to additional consideration from the buyer and therefore cannot be added to the assessable value under Rule 5 of the earlier Valuation Rules, 1975 or Rule 6 of the Central Excise Valuation Rules, 2000; this clarification should be communicated to field formations and trade.

Bearing classification rules: thrust bearing assembly treated as a bearing and held dutiable under central excise notification.
Thrust bearing assembly for submersible power-driven pumps is a type of bearing (hydrodynamic thrust bearing) and therefore dutiable; the exemption for parts of power-driven pumps excludes bearings and chapter placement does not affect dutiability, so the item must be classified under the pump-parts tariff heading applicable to such bearings and is not exempt under the relevant notification.

Waiver of statutory notice: procedural notice can be waived and does not negate jurisdiction to recover escaped duty.
Section 28's requirement to issue notice is a procedural protection personal to the addressee that may be waived; jurisdiction to recover escaped duty stems from the levy provision, so procedural noncompliance may render proceedings voidable but does not oust recovery jurisdiction. Separately, compounded levy schemes constitute distinct regulatory regimes, and general time-limit provisions for ordinary excise recovery do not automatically apply to such special schemes.

Export warehousing to Nepal: exporters may clear goods on payment of duty without interest when transactions are in Indian rupees.
Exports to Nepal from export warehouses may be allowed on payment of duty without interest when transactions are in Indian rupees and duty rebate is given to Nepal. Merchant exporters may clear goods directly from job-worker premises to export warehouses on the basis of the exporter's certificate, subject to procedural conditions prescribed by the Commissioner.

Classification of Di-calcium phosphate: prior Board instruction withdrawn; traders and field formations to follow current assessment practice.
Prior Board guidance classifying Di-calcium phosphate under subheading 2835.00 has been rendered invalid by subsequent judicial decisions; the Board's rule 37B instruction is withdrawn in its entirety. This recognizes divergent assessment practice across Commissionerates after those decisions and directs that trade and field formations be informed so classification and assessment follow prevailing practice and applicable law.

Protective demands prohibition where audit objections conflict with board instructions; refer such matters to PAC for resolution.
Field formations must not raise protective demands on the basis of CERA objections that are contrary to existing Board instructions or circulars; instead, such matters should be immediately referred to the PAC section of the Board for resolution with the C&AG rather than issuing demand-cum-show cause notices.

MRP valuation rules clarify scored-out labels are ignored and multi-pack valuation uses pack or aggregate MRPs.
Section 4A valuation: a scored-out MRP is ignored. For multi-piece packages, if individual items are marked not to be sold separately or are inseparably packed, use the multi-pack MRP; if items can be sold separately and display MRPs, use the aggregate of individual MRPs. If item MRPs are scored out or a free item lacks an MRP, use the multi-pack MRP. The circular references multi-piece package definitions and packaging declaration requirements.

Exemption for cold storage installation applies to non-manufacturer users where concessional removal procedures are complied with.
The circular clarifies that the exemption for specified goods supplied for installation of cold storage, cold room or refrigerated vehicles to preserve, store or transport agricultural produce under notification No. 6/2002-Central Excise applies to recipients who are not manufacturers, provided the goods are cleared for the intended purpose and the procedural requirements of the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001 are complied with.

Sales tax abatement: deduct only the sales tax legally chargeable and billed, not set-off amounts affecting remittance.
The allowable sales-tax abatement for computing assessable value under section 4 is the amount legally chargeable and billed to the buyer under local sales-tax law; sales-tax set-off that reduces tax remitted by the assessee does not reduce the sales-tax amount eligible for deduction from transaction value, except where State law requires consignment-wise adjustment so that only a net billed tax is legitimately chargeable.

Interest on delayed refunds: statutory interest must be paid automatically when refunds or rebates are sanctioned late.
Statutory interest is payable automatically when a refund or rebate claim is sanctioned beyond the prescribed three month period; officers must grant interest at the notified rate without awaiting superior or appellate directions, and Commissioners must fix responsibility and implement monitoring to ensure timely disposal and compliance with the interest payment provision.

Textual amendment clarifies wording in a prior circular by substituting a specified phrase to correct paragraph two.
Corrigendum issues a textual amendment to Circular No.657/48/2002-CX, directing that the words "though there is" in the last sentence of paragraph two be substituted with "the," as promulgated in Circular No.669/60/2002-CX dated 1 October 2002, solely to correct the wording of the prior instruction.

PAN-based 15-digit registration number required on TR-6; returns lacking it will not be accepted after November
Assessees will receive a 15-digit PAN-based Registration Number (including temporary system-generated numbers) effective 1 October 2002 and must be informed in the first week of October so they can quote it on the TR-6 challan. Chief Commissioners must prioritise notifying assessees and alert field staff to advise that returns without the new 15-digit Registration Number will not be accepted for returns filed from November 2002 onwards.

Appropriate duty requirement: exemption denied where inputs are exempt or subject to nil excise duty, altering prior clarification.
Exemption notifications conditioned on the appropriate duty of excise having been paid do not apply where inputs are exempt from excise or subject to a nil rate; the Board's prior clarification treating nil-rate or exempt inputs as "appropriate duty paid" is modified, and the same rule applies to additional customs duty.

Classification of assemblies as parts determines concessional duty eligibility; split AC cooling and condensing units lose exemption.
An assembly or sub assembly that lacks the essential characteristics of an air conditioning machine - namely evaporator coil, condenser coil, motor, fan/blower, compressor and capillary line - shall be classified as a 'part' and remain eligible for concessional duty; an assembly or kit containing all these components (including in CKD/SKD form) shall be classified as the complete machine under the deeming rule and will not qualify for the exemption. The 1996 circular is modified accordingly.