Capital goods classification: air-conditioners essential for manufacture by export-oriented units permitted duty-free under relevant notification.
Air-conditioners required and necessary for the manufacture or production of goods by export-oriented manufacturing units are to be treated as Capital Goods and allowed duty-free clearance under the relevant excise notification; the Customs clarification on this point is to be applied mutatis mutandis to excise practice and an earlier inconsistent Board letter is modified accordingly.

Provisional assessment permits temporary duty payment pending resolution of valuation or classification while ensuring final assessment by the proper officer.
Provisional assessment applies when an assessee cannot determine the value or correct classification of excisable goods or when the proper officer directs further inquiry; a deeming provision renders the assessment provisional from request until decision, allowing provisional returns, while final assessment remains the responsibility of the proper officer. Requests must state grounds, missing documents, period required, proposed provisional rate/value, and an undertaking to furnish information; the Assistant Commissioner may reject or direct provisional assessment and must specify grounds, provisional rate/value, bond for differential duty and required security.

Equalised freight deduction for multi factory valuations allows pro rata allocation to determine assessable value.
Where freight is averaged into prices and cannot be determined product wise or factory wise in multi product, multi factory concerns, total transportation costs for the period may be aggregated, amounts attributable to exempt, non excisable and specific rated consignments excluded, and the balance allocated pro rata to assessable products (for example by weight or sale unit) as equalised freight to be deducted in arriving at the factory gate assessable value.

Credit on EOU gate passes and invoices recognised, enabling regularisation of previously availed input credit under prescribed rule.
The Board prescribes gate passes issued under the EOU gate-pass rule for an earlier transitional period and invoices issued by 100% EOU/EPZ units for a subsequent transitional period showing additional customs duty as valid documents for allowing input credit; Assistant Commissioners may regularise credit availed on the strength of those documents where otherwise permissible.

Reversal of Modvat credit with interest required for exports under value based advance licence; compliance and reporting mandated.
Reversal of Modvat credit is mandated where exporters breached Value Based Advance Licensing Scheme conditions for exports before 31.1.97. Quantification is to follow the scheme's variables A, B, C and D and the prescribed formula. Exporters must deposit calculated interest on retained credit along with the reversed amount by 31.1.97, submit a Calculation Sheet to the Jurisdictional Assistant Commissioner for verification, and Commissioners must consolidate and forward default reports by 15.2.97. Certificates of reversal and interest payment require Assistant Commissioner attestation.