Assessing Officer jurisdiction clarified: officers formerly called Income tax Officer retain authority to act under omitted provisions.
Omission of sections 104-109 does not extinguish administrative action for assessment year 1987-88 and earlier; references to "Income-tax Officer" in those sections are to be read as references to the Assessing Officer (including the Income-tax Officer, Assistant Commissioner, or Deputy Commissioner (Assessment) exercising jurisdiction), and actions under the omitted provisions may be taken pursuant to the General Clauses Act.

Concessional duty on cut-tobacco now conditional on Chapter X end use verification for transfers to another factory.
Concessional treatment for cut tobacco removals to outside premises is conditional on observance of the Chapter X procedure when removals are for manufacture of cigarettes in another factory; the 1989 amendments alter tariff treatment and attach end use verification requirements, and earlier Board instruction F. No. 202/45/87 CX.6 is no longer relevant, with field formations advised to implement the amended regime.

Excisability of packing containers: packed goods, not in situ containers or foil caps, are assessed as the single assessable product.
Containers formed during packing (tetra packs, bricks, pouches, laminated sheets of paper, plastic, aluminium foil and combinations) do not come into existence as identifiable, marketable products separate from the filled goods and therefore the packed goods alone are to be assessed under the appropriate tariff heading. Aluminium foil caps arising in sealing of milk bottles likewise do not exist independently and are not to be assessed separately; the sealed milk bottle is the assessable article.

Teleprinter rolls classification: treated as articles of stationery, not exempt as converted paper, and subject to tariff classification.
Teleprinter rolls are not eligible for exemption as converted types of paper and paper board because the exemption covers only paper or paperboard obtained on conversion, not distinct finished articles; teleprinter rolls are market-recognised articles of stationery and must be classified accordingly under the relevant tariff headings.

Limitation on assessment: assessments under sections 143/144 barred after the two year statutory time limit; instruction directs officers promptly.
Substitution of sub section (1) of section 153 limits assessment orders under sections 143 and 144 to a two year period from the end of the assessment year in which income was first assessable, removes the extended time limits previously available under clauses (b), (c) and (d), and directs Assessing Officers to disregard those extensions and complete outstanding assessments for 1986 87 and earlier by the Board's stated deadline.

Frequent transfer of tax cases should be avoided when exercising delegated transfer powers to preserve jurisdictional stability.
Frequent transfers of tax assessment cases should be avoided when exercising delegated transfer powers; officials exercising delegated authority under the Income-tax Act must keep this recommendation in mind. Transfer authority vests in senior tax officers and Commissioners, and the Board issued central circle retention guidelines specifying periods cases must remain in Central Circles. Subject to those guidelines, administrative practice should favour jurisdictional stability and limit recurrent transfers under the transfer provisions.

Classification of polyols and isocyanates: components with additives must be assessed individually on merits for excise assessment
Polyols and isocyanates presented together for sale, even when containing additives such as fillers, plasticisers, flame-proofing agents, pigments, blowing agents, catalysts or foam stabilizers, must be classified and assessed individually on their merits; these additives are permitted additions that do not alter the constituent products' classification or convert them into a single "set." The Board accepts the technical opinion and directs field formations and trade to finalise pending assessments accordingly.

Time limits for assessment notices require service within the later of the return's financial year or six months after filing.
No assessment notice may be served after the later of the end of the financial year in which the return is filed or six months from the end of the month in which the return is furnished; Assessing Officers must ensure notices are actually served within that statutory period, with examples provided for computing the six month deadline, and the requirement applies mutatis mutandis to Gift-tax and Wealth-tax assessments.

Depreciation rates: Schedule XIV rates are minimum; higher bona fide technological depreciation may be provided with proper disclosure in accounts.
Schedule XIV and the amended provisions operate effectively from April 1987; companies need not recompute specified period if they follow Circular No.1 of 1986 and may continue old SLM rates for existing assets. Schedule XIV rates are minimum for assets acquired after applicability and lower rates are not permitted; higher rates are allowable on bona fide technological grounds with disclosure. SLM rates must be determined consistent with Schedule XIV, taking into account the Schedule's fractional-year basis.

End-use certification requirement for bulk drugs to secure central excise exemption; manufacturers must prove intended pharmaceutical use.
Manufacturers of "other bulk drugs" must produce certificates proving that the goods are used as bulk drugs or as ingredients in formulations to qualify for the excise exemption; authorities should insist on such end use proof because the exemption is to be read with the statutory definitions that limit relief to substances actually used as such or as ingredients in drug formulations.

Discretion to treat taxpayer not in default pending appeal allows suspension of disputed tax demand on application.
Exercise of section 220(6) discretion allows the Assessing Officer, on the assessee's application, to treat the assessee as not in default for amounts attributable to disputed points while an appeal remains pending where there are conflicting High Court interpretations or where the issue was earlier decided in the assessee's favour in the assessee's own case. The concession is limited to disputed amounts, may be withdrawn for non-cooperation or changed legal developments, and in other cases requires a speaking order; financial capacity is not relevant and the guidelines apply to other direct tax laws.

Duty exemption for intermediate goods used in domestic manufacture for export under bond applies to normal levies.
No duty need be collected on intermediate goods produced and used in the same factory in the manufacture of finished excisable goods exported under bond, irrespective of whether there is any provision permitting deferment or non-payment of duty on these intermediate goods; this non-collection principle, introduced to avoid compounded levy on inputs used in exported manufactures, applies equally to normal levies.

Validity of search-and-seizure orders lapses after sixty days unless Commissioner extends; pre-existing orders must follow procedure.
The Board directs that the procedural limitation causing search-and-seizure orders to cease after a fixed short period unless extended by Commissioner approval be applied to orders passed before 1 April 1989, thereby requiring those pre-existing orders to follow the same extension procedure to remain valid.

Classification of enzymes: bulk unmixed enzymes fall under the enzymes heading rather than as medicaments.
Products sold in bulk and unmixed like papain, pancreatin and various amylases do not satisfy the chapter 30 note conditions for medicaments (compounded products or unmixed products presented in measured doses or retail/hospital packings). The HSN Explanatory Notes specifically list these enzymes under the enzymes heading; accordingly such enzymes should be classified under the enzymes heading of chapter 35 rather than as medicaments under chapter 30, and field formations and trade are to be advised.

Removal of price controls on cement restores market pricing while preserving producer accounting and Cement Regulation Account obligations.
The amendment removes central price and distribution controls on cement effective 1 March 1989, deleting statutory powers over removal, sale, transport and price variation while retaining obligations on producers to maintain and produce accounts and records. The Development Commissioner for Cement Industry must maintain a Cement Regulation Account to receive producer payments and grants and to fund freight equalisation, price concessions, export/import adjustments and expenses to increase production and equitable distribution. Producers may claim reimbursements with required supporting details. Delegation of most powers to the Development Commissioner and savings preserving prior rights, liabilities and proceedings are provided.

Deemed Modvat credit: permitted on inputs supplied to job workers unless inputs are clearly non-duty paid or nil-rated.
Deemed Modvat credit is permitted on all inputs received by manufacturers, including those sent to job workers, unless such inputs are clearly recognisable as non-duty paid or chargeable to nil rate of duty; pending cases should be disposed accordingly and field formations and trade informed.

Registered Exporters and Export Houses defined per Import-Export Policy for interpretation in Central Excise instructions.
The circular states that the terms Registered Exporters and Export Houses used in Board instructions for Central Excise shall be given the same meaning as in paragraphs 6(6) and 6(7) of the Import-Export Policy, and urges that field formations be advised accordingly to ensure consistent administrative application.

Manufacture recharacterizes cutting, slitting and perforation of jumbo film rolls as production of finished cinematographic film, altering duty.
Cutting, slitting and perforation of imported jumbo rolls (1.15-1.455 m) are processes that convert an intermediate jumbo roll into a finished, ready for use cinematographic film and therefore amount to manufacture. Consequently, imported jumbo rolls are classifiable under sub heading 3702.90 and attract the concessional duty under the exemption notification, while the finished perforated and slit cinematographic films are classifiable under sub heading 3702.20 and attract the tariff duty applicable to finished film. Earlier instructions are modified and pending assessments finalised on this basis.

Classification of printed waxed wrapping paper: treated as converted paper and eligible for exemption under converted-paper heading.
Printed waxed wrapping paper is not a product of the printing industry when printing is merely incidental to its primary use; instead it is classifiable as converted paper. Converted paper encompasses wet and dry processes and expressly includes waxed paper, and printed waxed wrapping paper therefore falls within the tariff heading for converted paper and is eligible for the exemption applicable to converted paper. Pending assessments should be finalised in accordance with this classification.

Classification of reduction gear housing: Portal treated as a part of motor vehicles under the parts heading for vehicle assemblies.
The 'Portal' is a casing for wheel reduction gear assemblies that reduces wheel RPM and protects drive shafts. Under the HSN Explanatory Notes to Heading 87.08, reduction gear assemblies and casings for gearboxes, differentials and drive axles are parts of motor vehicles; therefore the 'Portal' is classifiable under Heading 87.08 of the CET and field formations should apply this classification.