Concessional customs duty on Sri Lanka imports reduces tariff rates for specified goods under notification.
Notification No. 84/95-Cus., communicated by Circular No. 33/95-Cus. dated 6 April 1995, prescribes concessional basic customs duty rates for specified goods imported into India from Sri Lanka and directs customs authorities and importers to apply those reduced rates under the notification's terms.

Excise exemption for twisted filament yarns clarified; tariff rates differentiated between draw-twisted and other polyester yarns.
Notification 77/95 amends prior exemption to fully exempt twisted polyester and twisted nylon filament yarn manufactured from textured or draw-twisted yarn provided appropriate excise or additional customs duty was already paid on the textured or draw-twisted yarn. Notification 78/95 specifies that the tariff value of 98 per kg applies to draw-twisted polyester filament yarn, whereas a tariff value of 90 per kg applies to polyester filament yarn other than draw-twisted or textured.

Duty exemption reform: additional customs duty on imported inputs with MODVAT claimability and mandatory Customs bonds.
All inputs imported under Value Based and Quantity Based Advance Licences are chargeable to an additional customs duty claimable as MODVAT where permitted; drawback remains available except for basic customs duty on inputs allowed duty free, and MODVAT claim bars drawback of the same benefit. Importers must execute Customs bonds for duty differences unless discharge certificates are produced. Licences and imported goods are nontransferable until export obligations are discharged, after which transferability requires licensing endorsement. Goods supplied free for jobbing are exempt only if re-exported to the supplier with at least ten percent value addition, subject to Customs verification and bond enforcement.

Invoice endorsement: Range Superintendent must endorse original and duplicate manufacturer's invoices to record new destination.
The amendment mandates that the Original and Duplicate copies of the manufacturer's invoice be endorsed by the Range Superintendent to show the new destination, establishing an administrative requirement for recording revised destinations on invoice copies under the Central Excise Rules.

Disability deduction: full statutory allowance when eligibility conditions and incurred dependent care expenses are satisfied.
Section 80DD grants a statutory deduction to resident individual and HUF assessees for expenditure on handicapped dependants where the dependant is a relative solely dependent on the assessee; suffers from a certified permanent physical disability or mental retardation reducing capacity for normal work; and the assessee has incurred expenditure on medical treatment, nursing, training or rehabilitation. The Board clarifies that when these conditions are met, the deduction provided by the section is allowable in full.

Compounding of offences: authority to compound now vested in senior tax administration; Commissioners no longer empowered.
The power to effect compounding of offences under the Act has been reallocated by amendments so that only higher tax administration officials - specifically the Chief Commissioner or the Director General - may compound offences; Commissioners of Income-tax no longer have that power. All compounding requests must follow the Board's guidelines and this position should be communicated to subordinate Commissioners.

Crude Palm Stearin imports allowed licence-free for eligible industrial users subject to splitting, FFA thresholds, and quarterly reporting.
Non-edible industrial grade Crude Palm Stearin may be imported without a licence by specified registered industrial users with on-site splitting facilities, provided CPS meets minimum free fatty acid thresholds (generally 10% or 5% for certain registrants), is used only for splitting into fatty acids and glycerol under an Actual User restriction, and subject to quarterly reporting to DGFT and the Directorate of Vanaspati, Vegetable Oils and Fats and issuance of utilisation certificates which determine further import eligibility.

Income tax rule amendment replaces the prescribed withholding form, altering Appendix II compliance requirements under the Rules.
Rulemaking under section 296 read with sub section (3) of section 269UC amends the Income tax Rules, 1962 by promulgating the Income tax (Twelfth Amendment) Rules, 1994, which substitute the existing Form No.37 I in Appendix II with a new prescribed form, thereby modifying the form based compliance requirements under those rules.

Sensitive list endorsement clarifies import clearance flexibility for non-sensitive items while preserving quantity and value restrictions.
Where licence holders import only non-sensitive items, no endorsement of sensitive-item quantities or values is required and the licence's balance value may be used for non-sensitive imports. However, items in the Sensitive List Part III bearing both quantity and value limits are excluded from this flexibility: their individual CIF value cannot be used for importing other permitted items. Electronic-item restrictions are modified as per the Handbook of Procedures note.

Order under Section 60 must be issued immediately after warehousing bond acceptance to fix warehousing period.
The warehousing period is to be determined with reference to the proper officer's Order under Section 60, and Customs Houses must issue that order immediately upon acceptance of the warehousing bond; each Customs House should establish and strictly follow procedures to ensure prompt grant of the Section 60 order to avoid procedural irregularities affecting interest on customs duty.

Tariff change notification: revised textile tariff entries expand SSI coverage; affected units must report denied SSI benefits.
Notification No. 75/95-C.E. amends Notification No. 1/93-C.E. by inserting descriptions for textile goods where budgetary tariff rates have increased, listing old and new headings, sub headings and rates to identify items covered under the Small Scale Industry scheme. The Circular directs manufacturers denied SSI benefits during the transitional period to submit detailed particulars (including goods cleared by old and new headings, values, duty paid and duty if SSI applied, amount of demand and adjudication status) for verification and consequential adjustment.

Account reconciliation requirement: Range Officers must match duplicate and quadruplicate challan copies within the prescribed time limit.
A fraud involved forging duplicate challan figures to overstate excise duty paid; detection occurred during bank reconciliation when duplicate copies did not match bank copies. The circular directs strict, time bound reconciliation of accounts, specifically requiring Range Officers to complete matching of duplicate challans with quadruplicate copies within the prescribed time limit and instructs field formations to implement this procedure to prevent similar frauds.

Designated area status: oil produced in designated offshore installations treated as produced in India and subject to central excise.
Oil produced on offshore installations declared as designated areas or within territorial waters is treated as produced in India and liable to Central Excise; oil from installations not notified as designated areas and outside territorial waters is treated as imported and liable to customs duty when brought to the mainland. Notification by the Ministry of External Affairs is pending for certain ONGC coordinates, and until issued those coordinates lie outside the scope of the Customs Act and the Central Excise Act.

Security for re-warehousing: reduced bank guarantee with transit bond for export-oriented units, conditional on prompt re-warehousing certificates.
Customs security for 100% EOU/EHTP/EPZ re-warehousing: for the first three years, movement allowed on a transit bond equal to duty plus a 5% bank guarantee, on condition that re-warehousing certificates are produced within three weeks of dispatch; failure leads to consignments allowed only on transit bond with full bank guarantee. If a unit installs capital goods, produces and exports as required and provides the certificates, the Collector may recommend subsequent in-bond imports on a bond without bank guarantee, subject to continued timely certificate production.

Customs duty on pulps revised by amendment to align tariff rates with existing notifications and clarify rayon grade treatment
Notification No. 77/95 amends Notification No. 69/95 to prescribe a uniform customs duty on pulps of headings 47.01-47.05, aligning published tariff rates. The circular notes that Notification No. 25/95 already treats mechanically or chemically derived fibrous vegetable pulps (excluding rayon grade) at a lower effective duty while rayon grade wood pulp attracts the higher effective duty, and states the amendment is technical to reflect that treatment.

Taxability of allowances: employer granted allowances are taxable unless specific statutory exemptions apply for HRA, notified duty related and overseas allowances.
Allowances paid by an employer to an employee are taxable as income unless specifically exempt. Key exemptions include house rent allowance subject to prescribed limits and salary definition, government notified allowances to meet duty related or posting related expenses (such as travel, remote area, tribal area, education and uniform allowances) subject to notification conditions, deduction for entertainment allowance under salary provisions, and exemption for allowances paid outside India by the Government to citizens serving abroad.

Section 80-O deduction available when technical services are rendered from India and received abroad, even if used in India.
Where technical or professional services are rendered from India and received by a foreign government or enterprise outside India, and the income is in convertible foreign exchange, the deduction under section 80-O is available to the Indian provider even if the foreign recipient utilises those services in India; services rendered or agreed to be rendered outside India include services rendered from India but exclude services rendered in India.

Duty-free imports of components: importer must prove components were received and used for manufacturing capital goods at port.
Extension of duty free import entitlement to replenishment components imported for manufacture of other capital goods in the importer's factory, subject to the importer proving to the Assistant Collector of Customs at the port of importation that the components have been received and used for that manufacturing purpose.

Additional fee standardisation: fixed late filing charges required on submission, with no show cause notice prerequisite.
Standardisation of additional fee under section 611(2) prescribes fixed rates for late filings: a monthly percentage regime for Form No. 5 under section 97 and a tiered fixed-multiple regime for other documents. The additional fee must be paid on filing; Registrars will not accept belated documents without payment and need not issue show-cause or demand notices, facilitating prompt recordation and public inspection.

Excise duty adjustment on polyester monofilament yarn reduces applicable rate for use in zip fastener manufacture.
Amendment prescribes an excise duty of 20% on polyester monofilament yarn of 2000 denierage and above when used in the manufacture of zip fasteners, noting para 26.15 confirms the 20% rate; units that cleared such yarn at 30% between 16-3-1995 and 19-3-1995 are asked to submit details to the Tax Research Unit by 10th April, 1995.