Cenvat credit on molasses allowed when used as input in dutiable manufacture, subject to unit structure and usage.
Cenvat credit on duty paid on molasses is permitted or denied based on use and organisational structure: in a composite unit, credit is unavailable where molasses is consumed to produce exempted or non-excisable ethyl alcohol, while credit on externally procured molasses used to make dutiable ethyl alcohol is available for duty on any finished product of the same factory; where sugar and distillery are separate entities, duty paid on molasses cleared by the sugar unit yields no credit for that unit but the receiving distillery may avail the credit.

Classification of Uninterrupted Power Supply Systems: provisional clearance under heading 85.04 allowed with simple bond, no bank guarantee required.
Pending final adjudication on conflicting tribunal views, UPSS are to be provisionally assessed and cleared under heading 85.04 on the basis of a simple bond, without taking a bank guarantee for the differential duty between the previously applied heading and heading 85.04.

Tax deduction from salaries: employer must estimate taxable salary, apply prescribed rates and perquisite valuation, and remit timely.
Instructions under section 192 for financial year 2001-2002 set out prescribed rates and a surcharge for tax deduction from salaries, employer and DDO duties to estimate annual salary, apply specified deductions and rebates (including Chapter VI-A and Chapter VIII provisions), adjust for multi-employer situations via Forms 10E and 12C, value perquisites under amended Rule 3 with recordkeeping requirements, issue TDS certificates (Form 16/12BA), file annual returns (Form 24), remit tax timely using correct challans, and observe penalties, interest and criminal sanctions for non-compliance; a limited relief on TDS for non-monetary perquisites for lower-salaried employees and for free/concessional travel tickets applies for FY2001-02 only.

Export documentation registration option allows pre-filing Annexure-C/C1 at service centre and preserves amendment at goods registration.
Exporters and CHAs may pre-file Annexure-C/C1 particulars at the Service Centre with Annexure-A/B so the printed checklist will include complete Annexure-A/B and C/C1 information for verification before shipping bill submission. If not pre-filed, Annexure-C/C1 can still be filed at goods registration. Amendments to Annexure-C/C1 entered at the Service Centre remain permissible at goods registration. The ICES-Export software has been updated to enable this facility and implementation issues should be reported to the System Manager/DC (EDI).

Fixation of input-output norms: DGFT updates SION entries and adds product-specific import allowances across sectors.
The Director General of Foreign Trade amends the Handbook of Procedures, Vol. II, by substituting, correcting and adding Standard Input Output Norms (SION). The notice inserts new SION entries across Chemicals, Electronics, Engineering, Textile and Miscellaneous groups, specifies export items with corresponding permitted import inputs and quantities (including alternative inputs and net to net or value based allowances), corrects descriptions and technical specifications, relocates at least one SION between groups, and attaches Annexures A-F for incorporation into the Handbook.

Re-fixation of rupee value for special currency basket updates valuation for USSR-era deferred payment contracts.
The Reserve Bank of India has revised the Indian Rupee valuation of the Special Currency Basket for use in calculating rupee equivalents under the Indo USSR deferred payments protocols; the Directorate General of Foreign Trade notifies that this revised rupee value applies to deferred payment contracts concluded under the protocols dated 30 April 1981 and 23 December 1985.

DEPB validity extension for embroidered silk items permits revalidation and acceptance of time-barred DEPB applications under procedure rules.
DEPB licences for embroidered silk items (including those mixed with non-silk Textile Products Group entries where DEPB was allowed only on non-silk items) shall have their validity extended for six months; licence holders must apply to the Regional Licensing Authority within 60 days with a request and a treasury receipt or demand draft for the prescribed fee. Regional Licensing Authorities may also accept previously time-barred applications for DEPB credit in respect of exported embroidered silk items, except where misrepresentation, fraud, or adjudicating orders exist.

Value Based Advance Licence regularisation: small shortfalls treated under existing policy, larger shortfalls converted to quantity based entitlement.
Value Based Advance Licence import entitlement is tied to declared value addition; failure to achieve declared value addition must be regularised under Policy Circular No.28(RE-2000)/2000-2001 where shortfall in value or quantity or both does not exceed fifteen percent of the total export obligation, and licences with shortfalls exceeding fifteen percent must be converted into Quantity Based Advance Licences.

Positive value addition applies to advance licences for deemed exports, with Appendix 39 held inapplicable to such transactions.
Advance Licences for deemed exports must meet the same positive value addition requirement as other Advance Licences; Appendix 39 of the Handbook of Procedures applies only to exports to Rupee Payment Areas and is not applicable to deemed exports, a position affirmed by the Policy Review Committee and earlier Policy Division guidance.

Bank guarantee exemption for government carriers; custodians may use amended guarantees covering cargo safety to transship.
The notice exempts Central and State Government undertakings from the bank guarantee requirement for transhipment. Custodians of ICDs/CFSs acting as carriers must amend their existing custodianship bank guarantees to include transhipment safety and security obligations and inform the Commissioner; once amended, no separate bank guarantee for transhipment is required. Other carriers must continue to provide a 15% bank guarantee of bond value. The earlier public notice is amended accordingly.

Trading under normal rolling settlement: scrips moved to rolling settlement based on depository connectivity and effective dates.
Scrips confirmed by depositories as having established electronic connectivity are to trade in the normal rolling settlement mode. Eight companies with connectivity before October 31, 2001 are effective immediately from January 31, 2002; an additional set confirmed as of December 31, 2001 will be effective from March 31, 2002. The classification and effective dates follow depository-provided connectivity status for transition to rolling settlement.

Eligibility for excise concession revoked for EOUs using imported consumables; Notification No.8/97-CE benefit withdrawn for such units.
Board rescinded a prior circular extending the benefit of Notification No.8/97-CE to export-oriented units using imported consumables and clarified that the notification's benefit is not available to EOUs that use imported consumables; field formations and trade are to be informed and receipt acknowledged.

Security requirements for merchant exporters restored, no surety/security required for exporters registered with recognised export promotion councils.
Merchant Exporters registered with Recognised Export Promotion Councils are not required to furnish security or surety for export bonds; the Board restores the prior practice in respect of such registered merchant exporters. Field formations must be informed of this clarification and are required to acknowledge receipt of the Circular, implementing the restored administrative position.

Rolling settlement on T+3 required, shortening the cycle from T+5 and stock exchanges must implement the change.
Mandate to institute rolling settlement on T+3 for all listed equity securities, replacing the prior T+5 cycle, with the compulsory T+3 rolling settlement to commence on April 01, 2002; stock exchanges must implement necessary system and operational modifications to effect the shortened settlement cycle.

Scrip-wise delivery disclosure mandated; no delivery period for dematerialised scrips; close-outs use previous-day closing price.
Exchanges must publish scrip wise deliverable positions grossed across clients each trading session under compulsory rolling settlement; there will be no "no delivery" period for scrips traded in compulsory dematerialised mode, and where short deliveries cannot be purchased on a cum basis the Exchange may close out the shortfall. In rolling settlement the reference price for close out procedures shall be the previous day's closing price for the scrip.

Import sanitary permit requirement for passenger pets: permit or authorized import licence and quarantine clearance required at entry.
Passengers importing bona fide pet animals may be admitted only against an import sanitary permit issued by the Department of Animal Husbandry & Dairying or an import licence issued by the licensing authority, and only after obtaining clearance from Animal Quarantine authorities; customs field formations must enforce these requirements.

Classification of leather sandals: open-type footwear may qualify for higher drawback rates when assessed on totality of features and proof.
Admissibility of higher drawback rates for leather sandals depends on classification as Leather Sandals. A sandal is open-type footwear with an upper not covering the entire foot, composed of components such as straps or vamps, and a bottom assembly comprising insole, sole and an in-built or attached heel of minimum thickness of 10 mm; a sandal may lack a back strap. Sandals employ higher-duty inputs and greater finishing, so drawback rates and caps are higher; officers must assess goods in totality and consider documentary proof and product catalogues.

Import of cinematograph films allowed without licence, subject to exhibition certification and prohibition on pirated imports.
Importation of cinematograph films and other film formats is permitted without licence but importers must comply with applicable Indian distribution and exhibition laws, including obtaining the certificate of public exhibition under the Cinematograph Act, 1952; unauthorized or pirated films are prohibited; foreign reprints of Indian films require prior written permission from the Ministry of Information & Broadcasting, which may waive or relax requirements in the public interest.

Bond Management System centralizes bond registration and requires bond/BG debits before customs goods registration and release.
A centralized Bond Management System in the Customs EDI System will register and maintain bonds, bank guarantees and sureties, record debits/credits for electronic and manual Bills of Entry, and generate a single running bond registration number printed on assessed B/Es. The system enforces bond/BG validation and prevents goods registration or release unless bond/BG debits are completed; Appraising Officers specify bond type and amount with AC confirmation, and detailed procedures govern warehousing, provisional assessments, high seas sales valuation, EOU registration and job-work exemptions.

Inter-unit transfer of goods permitted to SEZ units under policy, allowing EOUs/EPZ/STP/EHTP to transfer or lend goods to SEZs.
Policy provisions permit EOU/EPZ/STP/EHTP units to transfer, lend or lease goods imported/procured duty free and to transfer manufactured or processed goods to SEZ units; these transfers should be allowed administratively pending formal amendment of the notifications governing the EOU/EPZ/STP/EHTP schemes, and wide publicity by public notice is to be issued with reports of implementation difficulties to the Board.