Returnable packing exclusion applies only when packing is contractually returnable by the buyer; Board directs review of cases.
The exclusion of durable packing from assessable value applies only where the packing is returnable by the buyer to the assessee under an arrangement between buyer and seller; physical capability alone is insufficient. The Board directs collectors to review pending court cases and appeals in light of this principle and take action to pursue or withdraw cases accordingly.

Coverage of wash oil clarified: wash oil is distinct from middle oil and not covered by the notification.
The Board, relying on the Dy. Chief Chemist's analysis, concludes that Wash Oil is chemically and commercially distinct from Middle Oil-different distillation ranges and end-uses-and therefore Wash Oil may not be covered by the description at Serial No. 5 of notification No. 298/86-C.E.; field formations and trade should be advised and pending assessments finalised accordingly.

Capital goods classification of sintex storage tanks permits exemption for free trade zone and EOU procurements.
Sintex storage tanks used for storage of water required in the latex foam manufacturing process are treated as capital goods and, when procured from the Domestic Tariff Area for that purpose, are eligible for exemption under the notifications applicable to free trade zones and export oriented units.

Marketability test: intermediate-stage sugar syrup in aerated water manufacture is non-dutiable when not marketable or preservable.
The question is whether intermediate-stage sugar syrup in aerated water manufacture is a marketable product liable to excise. The syrup is produced, not packed or sold, ferments quickly and cannot be preserved. Applying the marketability test, the syrup remains an in-process combination that has not reached a marketable stage; therefore it is not dutiable. The Board accepted this conclusion and instructed field formations to act accordingly.

Valuation of captive consumption: call to standardise profit margin for assessable value under excise valuation rules.
The circular addresses valuation of goods consumed captively under rule 6(b)(ii) of the Central Excise (Valuation) Rules, 1975, which requires adding a reasonable profit margin to cost of manufacture. It notes proposals to fix a uniform statutory profit percentage and requests officers to report on unit details, valuation method used (comparable price or cost-plus), historic cost and profit percentages, sector classification, basis for margins, comparable prices where relevant, estimated sellable profit, and suggestions for industry-specific statutory profit rates for captive-consumed excisable goods.

Subsidy treatment for regional film producers: exempt from income tax but not deductible from production cost under rule 9A.
Subsidies from State Governments to producers of regional feature films are not to be charged to tax; however, under the Explanation to sub rule (1) of rule 9A of the Income tax Rules, 1962, the cost of production must be reduced by any subsidy that has been included in computing the producer's total income, and conversely subsidies not charged to tax shall not be reduced from production cost for rule 9A purposes. The amendment and the concession apply to assessment years subsequent to the amendment's effective date.

Tax deduction at source on insurance commission requires prescribed withholding rates and compliance, with limited resident exemption.
Deduction of tax at source applies to income by way of insurance commission paid to residents and non-residents, with prescribed withholding rates for different classes of payees and an additional surcharge for resident individuals and domestic companies. The resident de minimis exemption for small annual commission receipts does not apply to non-residents, and amounts credited in the payer's books are treated as credit to the payee for deduction. Payors may apply to the assessing officer to determine taxable income, and non-residents may seek certificates authorising payment without deduction.

Bonded warehouse policy revised: state warehousing corporations may open public warehouses in underserved areas and private specialized warehouses permitted.
State Warehousing Corporations may be appointed as public bonded warehouses in interior locations lacking Central Warehousing Corporation facilities without a no objection certificate, subject to approval by the jurisdictional Collector. Private bonded warehouse licences may be granted for goods requiring specialised storage when Central or State warehouses cannot provide such facilities; Collectors must forward such applications with recommendations to the Board for decision, and earlier instructions are modified accordingly.

Drug intermediates clarified: chemicals under relevant tariff item used by drug manufacturers qualify for exemption when used in drug manufacture.
The Board accepts that, for the period when exemption was granted generally, any chemical falling under the relevant tariff item and sold to a drug manufacturer and used in the manufacture of drugs should be treated as a drug intermediate and entitled to the exemption; field formations and trade are to be informed and pending assessments finalised accordingly.

Excise exemption for prilled ammonium nitrate: no duty chargeable and no Modvat credit on melt derived material.
Prilled ammonium nitrate obtained from ammonium nitrate melt is not excisable because the conversion does not produce new excisable goods; Collectors must ensure no Central Excise duty is levied and no Modvat credit of such duty is allowed, and pending assessments must be finalised accordingly.

Deduction of tax at source under section 194C now attracts an additional surcharge increasing withheld tax obligations.
Obligations under section 194C require specified payers to deduct tax at source from payments to resident contractors and, at a reduced rate, from payments to resident subcontractors, with a non-deduction exemption where contract consideration does not exceed the prescribed threshold; the prescribed deduction is to be increased by a Union surcharge calculated on the amount of tax deducted, and departments and public sector payers are instructed to implement and seek assistance from the assessing officer or local Income tax PR officer as needed.

Exemption for residential capital gains confirmed for self-occupied property despite nil deemed annual value under income tax treatment.
Exemption for capital gain on transfer of a long term residential house is available for self occupied property because income from a self occupied house remains chargeable under the head Income from House Property even if its annual value is computed as nil under the deemed annual value rule and related deductions.

Classification of goods: classify items by how they are presented, not by their intended post-sale use.
Printed plastic sheets ready for use in manufacturing stoppers, lids, caps and similar closures are to be classified by reference to their nature as presented for assessment, not by their subsequent use as packaging; the essential character test should not be applied to recharacterise goods based solely on what they may immediately become after clearance, and the Board directs field formations to adopt this approach and finalise pending assessments.

Relevant date for customs duty: rate determined on date of payment when goods are removed after warehousing expiry.
When goods remain in a customs warehouse beyond the permitted warehousing period they cease to be warehouse goods and their removal after expiry is not covered by the warehouse-specific provision; the residual clause applies and the rate of customs duty is the rate prevalent on the date of payment of duty. The warehouse provision still applies where removal occurs after an approved extension but before expiry of that extension, provided the extension application was received before the permitted period expired.

Tax deduction at source from salaries: employers must compute TDS on estimated annual salary including specified allowances and adhere to compliance rules.
Deduction of tax at source from salaries for 1989-90 under section 192 requires employers to deduct tax at the average rate on estimated annual salary (including specified perquisites and allowances) divided monthly, subject to statutory thresholds and rounding rules. The Circular summarizes rate changes and surcharge amendments, expansion of "income" to include various allowances, valuation of perquisites, and the availability and limits of exemptions and deductions under provisions such as section 10 exemptions, section 16 standard deduction and entertainment allowance, section 80C housing and provident fund provisions, and other reliefs. It sets out Form No.16/Form No.24 filing, TAN quoting, challan use and penalties for non-compliance.

Classification of blended yarn: presence of natural fibres shifts tariff classification from synthetic-only subheading to general blended-yarn subheading.
Classification depends on fibre composition: yarn with acrylic predominance that contains only other synthetic staple fibres (including waste derived fibres) is classifiable under 5504.31; if the yarn also contains natural fibres, it falls outside 5504.31 and is classifiable under 5504.39.

Assessable value exclusion for container charges: rental and maintenance not includible; circular withdrawn and field formations notified.
Charges for durable and returnable containers-retention/rental and maintenance/service charges-are not includible in the assessable value because container supply is ancillary to the excisable manufacture and not part of the price for manufacture. The Board accepts the judicial principle excluding container value and related charges from assessable value and withdraws earlier circulars advising inclusion; field formations are to be notified and implement this position.

Tax deduction at source on lottery and race winnings requires flat-rate withholding with surcharge and strict compliance obligations.
Tax must be withheld on winnings from lotteries, crossword puzzles and horse races where amounts exceed the exemption threshold, on gross winnings after commission-agent deduction, at the flat rate and with the surcharge specified in the Finance Act; specified exceptions apply for certain Sikkim lotteries. Withholders must provide prescribed certificates, quote TAN, file annual TDS returns on designated forms and remit deducted tax to Government within prescribed time, subject to administrative penalties and prosecution where statutory obligations are not met.

Levy of cess on intermediate jute products affirmed; collectors to apply High Court rulings and adjust demands and notices accordingly.
Cess on intermediate jute products consumed captively in manufacture is leviable for the period 1-3-1976 to 1-5-1984; the Board directs collection of such cess in line with High Court judgments, settlement of demands accordingly, defence of pending cases on that basis, modification of Circular No. 36/88, and withdrawal of related Trade Notices.

Classification of wetting agents as surface-active preparations permits exemption under central excise notification when prescribed conditions met.
Wetting agents used captively in textile yarn manufacture exhibit surface-active properties and are used during roving and yarn formation to prevent hairy fibres. The Chemical Examiner and the South Zone Tariff Conference concluded these wetting agents are surface-active preparations and not finishing agents, and therefore fall under the chapter for surface-active preparations and may qualify for exemption under the relevant central excise notification if they fulfil prescribed conditions. Classification of binding agents is under further examination.