Presumptive taxation exclusion: presumptive-basis cases excluded from sample scrutiny, except those subject to compulsory scrutiny.
Cases under presumptive taxation schemes are excluded from sample scrutiny, except where they fall within the Board's compulsory scrutiny class; Instruction No. 1917 is modified to this extent. Chief Commissioners and Directors General are directed to ensure uniform adherence to the prescribed sample-selection procedure set out in Instruction No. 1917, addressing observed deviations in practice.

Export Promotion Reporting: Scheme wise monthly returns must state imports, exports and duty forgone/collected for compliance.
Revised reporting obligations require submission of scheme wise Export Promotion Returns (EPR I-VII) capturing imports, exports and revenue forgone/collected for each Export Promotion Scheme including Advance Licensing, Special Imports Licensing, EPCG, 100% EOUs, EPZ units and the Pass Book Scheme; reports must provide category totals and a grand total, with Pass Book returns detailing registered pass books, major commodities, shipping bills, FOB/CIF values, credits and duty debited, and duty collected defined to include applicable CVD or concessional duties.

Withdrawal of prosecution: notify trial court when tax appellate reductions are accepted to facilitate complaint discharge.
Where appellate reductions in quantum or penalty are accepted by the Department, Chief Commissioners must direct Departmental Prosecution Counsel to inform the Trial Court of the changed circumstances and resulting infirmity in the prosecution complaint, rather than forwarding proposals for withdrawal to the Board, to facilitate disposal and discharge of the complaint.

Compounding fee calculation: compute fee from tax on concealed income at maximum marginal rate, then apply prescribed percentage tiers.
Compounding fee must be computed by reference to the income sought to be concealed and the tax on that income calculated at the maximum marginal rate. The fee is set at 100% of that tax where the concealed income is below the monetary threshold, and 200% where it exceeds the threshold, replacing divergent interpretations based on tax alone or aggregated tax, interest and penalties.

Tax deduction at source exclusion for non-residents paying Indian professionals when no local presence, subject to quarterly reporting.
Payments of professional fees made through regular banking channels by non-residents who have no agent, business connection, or permanent establishment in India to resident chartered accountants, lawyers, advocates or solicitors are not subject to tax deduction at source under the provision governing professional fees. Such non-resident payers must, however, submit quarterly statements identifying the payee to the designated office of the central tax administration as a condition of this treatment.

Transhipment eligibility expanded to include multiple applicants and transport modes, altering bond and fee rules.
The Goods Imported (Conditions of Transhipment) Regulations, 1995 replace the 1984 rules and specify that applications for transhipment may be made by the master of vessel/aircraft, steamer agent, consolidation agent, container agent or any person authorised by the foreign supplier or agent; transhipment may occur by more than one mode of transport; bonds may be furnished by the applicant, the transporter, or the custodian at the ICD/CFS; and the transhipment application fee has been revised.

Subsequent processing for export permitted under Rule 12(1)(b) with Commissioner approval and AR-5 supervision.
Subsequent processing of duty-paid goods for export is permissible only under Rule 12(1)(b) with Commissioner approval and specified safeguards: processing at a Commissioner-approved place ("warehouse"), export under proforma AR-5 generated at that place, opening of input packages under excise officer supervision with sampling and testing to verify duty-paid character and composition, declaration of input-output ratio, and defacement of invoice copies. Discrepancies found on verification bar export under Rule 12(1)(b); alternative export routes such as drawback may be available. Prior inconsistent circulars are superseded.

Rounding off excise duty to the nearest rupee required; duty must be shown in words and figures to prevent invoice tampering.
The Board mandates that duty amounts in invoices under Rule 52A / 57GG / 57T be rounded to the nearest rupee in accordance with the statutory rounding requirement, and that the rounded amount be indicated both in words and in figures to prevent fraudulent inflation of duty and improper availing of Modvat credit.

Rectification under section 154: post-assessment approval notifications can justify amending assessments if conditions are met.
The Board's position is that where approval notifications under section 10(23C)(iv) or section 35(1)(ii)/(iii) are issued after completion of assessments but are applicable to those assessment years, the subsequent notification constitutes a mistake apparent from the record and may be rectified under section 154; Assessing Officers must ensure the conditions of the approval are satisfied before granting rectification.

DTA clearances for EOU goods allowed on payment of full customs duties with EXIM permissions and entitlement adjustments.
DTA clearances of goods from EOUs/EPZUs/STPUs that are non identical to exported goods may be allowed on payment of full customs duties, provided the unit produces permissions from competent authorities under the EXIM Policy; such clearances will entail adjustments against the unit's DTA sale entitlements except where specific EXIM Policy provisions provide otherwise.

Quantity-based licence treatment: para 62/62A licences to be treated as issued under para 50/55, enabling customs exemption access.
Quantity based licences under paragraphs 62 and 62A of the EXIM Policy shall be deemed for all purposes to have been issued under paragraph 50 or 55 as appropriate, and future QBAL licences issued under paragraphs 62/62A will be issued under paragraph 50, enabling extension of customs exemption treatment and requiring issuance of public notices or standing orders for trade guidance.

Transfer of imported goods: veiled sales through replenishment by merchant exporters negate duty-free advance licence benefits.
Whether goods imported duty free under Notification No. 204/92 by a Merchant Exporter and supplied as replenishment to a supporting manufacturer constitute a transfer is decided by the scheme's intention: licences and imported materials are subject to an actual user condition. Outright purchases embedding input costs amount to a veiled sale and disqualify duty free benefit where Modvat has been availed; job work or contracts limited to jobbing charges that do not transfer ownership satisfy the Notification.

Deduction for software exports: whether total turnover for the deduction includes non software business turnover.
Whether the total turnover for computing the deduction under 80HHE comprises only turnover from the assessee's computer software business or includes turnover from other business activities is the principal issue; the Board requests reporting of the computation method adopted by Assessing Officers and the views taken by appellate authorities.

Cash rebate entitlement affirmed for duties paid through RG 23A Part II under Modvat guidance.
Clarification that cash rebate is permissible under the Modvat framework where duty has been discharged through RG 23A Part II, by reference to the rebate instructions set out in Circular No. 21/89-CX.6; the circular inserts a new paragraph after para (xiv) of the consolidated Modvat instructions to confirm that eligibility.

Duty drawback threshold reduced; lower minimums and special exceptions for postal and duty-exemption exports apply.
Amendment of Rule 8 reduces the monetary threshold for payment of duty drawback and retains a minimum two percent of F.O.B. value where the calculated drawback is below that threshold, except that the two percent minimum does not apply to exports by post and exports under Advance Licences issued under the Duty Exemption scheme. The amended limits are to be applied with reference to the date of the Let Export order, so the relaxation operates only for shipments permitted on or after the amendment's effective date.

Anti dumping duty rebate: claimable only via brand rate after verification, included when goods are exported as imported.
Anti dumping duty is rebatable as duty drawback but, since it is excluded from the all industry drawback rate, it can be claimed only by obtaining a brand rate after verification that the inputs which incurred anti dumping duty were actually used in the exported goods; if imported goods subject to anti dumping duty are exported as such, drawback will include the anti dumping duty as part of total duties paid.

Invoice serialisation compliance prevents invoice number misuse and mandates printed running serial numbers to deter duty evasion.
The circular identifies misuse of invoice numbering-where serial numbers are not pre printed and are hand written or assigned later-as a means to evade excise duty. It directs surveys of duty paying units to ensure invoices bear printed running serial numbers for the whole financial year, mandates prompt offence proceedings for infringements, placement of noncompliant units on suspect lists, intensified surveillance of clearances, and strict field implementation of related recordkeeping rules.

Non availment of Modvat Credit: certificates may be issued where monthly reversal occurs before periodic return filing.
Where a manufacturer/exporter reverses Modvat credit at the end of each month for all exports of that month and before filing the RT 12 return, the Range Superintendent may issue the requisite certificate of non availment of Modvat credit on the exporter's copy of AR 4/AR 4A or an attested copy, after verifying range records including RG 23A, defaced invoices, RT 12 returns and the Range's copy of the relevant AR 4/AR 4A.

Tax deduction from salaries: employer duties, estimation rules and allowable exemptions and reporting obligations for payroll withholding.
Rates and procedure for deduction of income-tax from salaries for 1995-96 under section 192 require employers to estimate gross salary including perquisites, allow specified deductions (standard deduction, Chapter VI-A) and applicable rebates, compute tax at prescribed slab rates, deduct monthly in equal instalments, remit using prescribed challans and TAN, issue Form No.16, and file annual returns; exemptions, perquisite valuation rules, aggregation of income where multiple employers exist, and penalties, interest and prosecution for non-compliance are explained.

Classification of advertising metal plates as advertising sign plates under tariff Chapter determines their excise classification.
Printed metal plates functioning as advertising signs are classifiable under Chapter 83 as advertising sign plates because their essential character is advertising function; the more specific heading governs and Chapter 83 is aligned with the HSN which excludes metal sign plates from the printing chapter.