Penalty under section 114A applies to both customs duty and interest where collusion or willful suppression is found.
Penalty under section 114A of the Customs Act, 1962 should be assessed to include both duty and interest; the Ministry of Law advised that the disjunctive conjunction "or" may be read as "and" to give effect to legislative intent, and field formations should apply this construction when imposing penalties for collusion, willful misstatement, or suppression of facts and issue Standing Orders accordingly.

Import of currency notes permitted for authorised dealers without separate central bank clearance; customs must allow normal imports.
Authorised dealers may import currency notes from their overseas branches/correspondents to meet normal banking requirements under the general permission retained from the Exchange Control Manual/FEMA; customs should not insist on separate Reserve Bank clearance and any implementation difficulties should be reported to the Board.

Duty evasion through Advance Licence Scheme exposed; customs instructed to alert field staff and prevent high seas sales fraud.
Duty evasion under the Advance Licence Scheme involved SIPL obtaining licences using a fictitious office and manufacturer, arranging ostensible high seas sales so bills of entry were filed in SIPL's name, obtaining duty-free clearance, then delivering goods to original importers for a premium. The circular directs issuance of instructions to customs field staff to detect and prevent this modus operandi and requests acknowledgement of receipt.

Special Additional Duty drawback allowed where customs law grants drawback on any customs duty, restoring entitlement for exporters.
The document addresses whether drawback may be claimed on the Special Additional Duty component of customs duty. An earlier legal view interpreted the tariff provision as not providing for drawback on SAD and temporarily disallowed it. After representations and review, including a policy opinion that government intent was to allow such drawback, customs leadership directed that drawback on the SAD element should be afforded and administrative guidance issued.

Customs duty exemption: accept Major General-signed certificates as equivalent to Joint Secretary for defence imports eligibility.
Full customs duty exemption for specified defence imports is available on production of a duty exemption certificate; certificates signed by a Major General must be accepted because the warrant of precedence equates that rank to a Joint Secretary, the prescribed signatory for the exemption.

Present market value rule: DEPB credit based on market value when declared FOB exceeds market value; fraud investigations permitted later.
Where declared FOB exceeds the present market value as declared by the exporter or ascertained by Customs, the present market value shall be the basis for allowing DEPB credit; this applies to all export products regardless of DEPB rate. Verification of present market value must be conducted by the Special Intelligence & Investigation Branch, with enquiries completed within thirty days, extendable up to ninety days by the Commissioner and further extendable for fraud after recording reasons. Fraud, collusion, wilful mis-statement or suppression cases may be opened within a five-year period and recovery notices issued.

Possession of specified Indian currency notes prohibited in Nepal; travellers must carry valid ID and comply with vehicle import rules.
Possession of certain Indian currency notes is prohibited in Nepal and may be punishable; Indian travellers should carry valid identity documents (passport, government photo ID, voter ID, or driving licence). Indian vehicles must present original Registration Certificate, Insurance documents and Driving Licence, pay temporary importation duty and taxes at first entry, obtain receipts and a temporary registration number plate, and display it at subsequent check posts. Do not carry arms and ammunition. Officials are to publicise the advisory at airports and Land Customs Stations and provide consular contact numbers for assistance.

Wrong availment of drawback disallowed: exporters must not claim drawback for inputs imported duty-free under a customs notification.
Drawback is payable only where inputs have borne customs or excise duty; inputs imported duty-free under Customs Notification No. 32/97 disentitle the exporter to drawback or DEPB. Customs must verify import records when processing shipping bills, require declaration on the shipping bill of materials imported duty-free under that notification with details, and examine records to report cases of simultaneous wrongful availment for further action.

DEPB verification procedure tightened: authorised registration, computerised debits, and direct credit transfers required for third party use.
The notice prescribes a controlled verification regime for DEPB scrip: only the holder, authorised employee or authorised CHA may submit scrips; authorised persons must obtain a registration number via a holder issued certificate recorded in a register. Examiners must verify shipment details against computer/EGM data, appraisers and an Assistant Commissioner must countersign, and verified scrips are registered in the computer with the registration number endorsed and returned on a fixed third day schedule. DEPB debits are to be made on the computer, and exemptions for non holders are allowed only where a specific amount of credit is directly transferred by the DEPB holder.

Jurisdiction of Settlement Commission limited where duty liability was disclosed; cannot settle export obligation defaults or waive interest.
Settlement Commission jurisdiction is confined to cases involving failure to make a full and true disclosure of duty liability to the proper officer. Under Advance Licence and EPCG schemes licence holders acknowledge differential customs duty and interest on default via bond/bank guarantee at import; hence defaults in export obligation are not undisclosed liabilities. Consequently, the Commission lacks authority to entertain settlement or waive interest where duty liability was declared and secured at import.

Duty free import approval for SEZ supplies requires Committee clearance, certified requirements, and ongoing utilization monitoring.
Exemption allows duty free importation or procurement of goods for SEZ development, operation and maintenance upon approval by a Committee chaired by the jurisdictional Chief Commissioner. Developers must submit certified lists of goods, proof of land ownership or long-term lease, and financial solvency evidence; approvals are limited to goods directly connected with SEZ work and exclude items for personal consumption. The Committee monitors use via quarterly statements, inspects site utilization, may mandate a Cost Accountant audit at the developer's expense, and sets construction schedules while addressing delays on merits.

Classification of software media: default classification under 85.24 unless forming a retail set subject to GIR 3(b).
The revised Chapter Note 6 to Chapter 85 clarifies that "those headings" refers to 85.23 or 85.24; software media remain classifiable in those headings only when presented with the apparatus for which they are intended. Software accompanying other articles is classifiable under 85.24 unless the media and articles together form a set put up for retail sale, in which case GIR 3(b) governs classification of the set as a whole.

Bank guarantee calculation for silver imports under Export Against Supply scheme tied to reduced nominated-agency duty rate, easing transaction costs.
For calculation of the bank guarantee amount in respect of silver imported under the "Export Against Supply by Foreign Buyer" scheme, the duty on silver shall be taken at the rate applicable to nominated agencies under notification No.80/97-Cus. (the reduced nominated-agency duty rate). Circular No.36/2002-Cus. dated 28 June 2002 is amended to this extent; a Public Notice will be issued and implementation difficulties should be reported to the Board.

Duty-free import entitlement for raw pearls and precious stones allowed against legacy REP licences under transitional Exim provisions.
Imports of raw pearls and precious or semi-precious stones, unset and uncut, are eligible for duty exemption when imported against Replenishment Licences and Gem Replenishment Licences issued under the earlier Exim Policy whose validity has not expired; the policy provisions were relocated without material change and transitional arrangements preserve the effect of previously issued licences, and customs authorities are to allow the exemption and issue a public notice.

Inclusion of payment date in interest calculation affects interest computation under customs and excise provisions.
The Board directs that the date on which duty is paid shall be included in the period for calculating interest on delayed payment under Section 28AA/28AB and other provisions of the Customs Act, 1962, and under Section 11AA/11AB and other provisions of the Central Excise Act, 1944, and rules thereunder. This interpretation follows the ordinary, inclusive meaning of the word 'till' as 'to the time of' or 'until', and uniform compliance is required, with any implementation difficulties to be reported to the Board.

Show-cause notice must be issued on audit objections to prevent time-bar even if legal interpretation remains unsettled.
Issuance of Demand Cum Show Cause notices is mandatory on receipt of audit objections against EOU/EPZ/EHTP/STP units; prior guidance to await Board examination of interpretative issues does not excuse delay. Notices must be issued promptly even when the matter involves interpretation of provisions or exemption scope, to prevent demands becoming time barred, and field formations must be instructed to comply strictly.

Warehousing extension: Chief Commissioners must grant limited, conditional extensions emphasizing goods' condition and accrued interest payment.
Section 61 empowers Commissioners and Chief Commissioners to extend warehousing periods; Chief Commissioners must exercise this power restrictively to curb bonded stock and revenue lock-up. Extensions beyond Commissioners' grants should be for the shortest feasible period and only longer where circumstances beyond the importer's control exist. Authorities must ensure goods' condition and may require testing; accrued interest for prior warehousing must be paid before further extension and will be adjusted against final liability. Certain categories of imports may receive a more liberal approach, and trade should file timely applications.

Transhipment permits must be granted for movement to ICDs/CFSs; detention allowed only on specific intelligence with written senior permission.
Transhipment permits for movement of containers to other ports/airports, ICDs or CFSs must not be refused and should be issued smoothly; examination or detention of containers is permitted only on specific intelligence of mis-declaration or contraband, and any detention at the gateway port requires prior written permission from the Joint/Additional Commissioner.

Export oriented unit registration required for import clearance; provide prescribed original documents and procurement certificates for timely customs processing.
Registration under the Export Oriented Units Scheme is required before clearance of imported goods; applicants must register with the 100% EOU Section and provide originals such as Green Card, permission letters or licences from Development Commissioner/Director EHTP/STP/BOA, licences under the Customs Act, IEC proof, bank attested authorised signatory, corporate formation documents and photographs. Additional photocopies required include proof of ownership, accepted B 17 bond, legal undertaking and permitted items list, L.O.P. application/profile copy, and income tax return. Units should obtain procurement certificates based on purchase orders/proforma invoices specifying detailed descriptions and, for textiles, yarn and fabric composition and measurements for expedited clearance.

Valuation guidance suspension: marble slab and block valuation provision kept in abeyance pending Board review.
The Board has found discrepancies in the valuation guidance for marble slabs and blocks (para 2(d) of the earlier circular) and has decided to keep application of that provision in abeyance pending final reconsideration. Field formations are instructed to report implementation difficulties to the Board and to acknowledge receipt of this instruction.