Domestic sale entitlement for export oriented units governed by indigenous content, licence conditions, and certified authorisation.
Approved 100% Export Oriented Units and Export Processing/Free Trade Zone units may sell a limited portion of production into the Domestic Tariff Area under specified Open General Licences, subject to customs duties, exclusion of specified items, measurement by ex factory value excluding approved rejects, and entitlement determined by the value of indigenous constituents; applications require certified production and cost statements, endorsement by Customs/Central Excise, and authorisation by the Export or Development Commissioner permitting removal to the DTA.

Exclusion of exempt clearances clarified: clearances exempted under other notifications must be ignored when computing aggregate value.
The Government clarifies that, for computing the aggregate value of clearances under Notification No. 175/86, clearances of excisable goods exempted from the whole of duty by any other notification issued under the Central Excise Rules shall not be taken into account; the prior Board clarification to the contrary is withdrawn and trade is to be informed.

Tariff classification: Alpha Beta Dichloro Ethyl Acetate deemed classifiable as a saturated chloro derivative under excise tariff.
Alpha Beta Dichloro Ethyl Acetate, an intermediate in sulphonamide manufacture, is a saturated chloro derivative of the acyclic monocarboxylic class and is classifiable for excise under sub heading No. 2915.10 of the Schedule to the Central Excise Tariff Act, 1985, pursuant to the Deputy Chief Chemist's technical opinion.

Refund of surcharge for non residents authorised by retrospective amendment; tax commissioners may grant refunds subject to set off.
The Finance (Amendment) Act, 1987 removed the surcharge liability for non-residents with retrospective effect to the date of the Ordinance, creating entitlement to refunds for non-residents who paid or had surcharge deducted. The Central Board authorised concerned Commissioners of Income-tax to permit such refunds despite the absence of an express refund provision in the Income-tax Act, subject to adjustment of any outstanding demands against the assessee.

Predominant-fibre rule governs classification of shoddy woollen textiles, based on raw materials and administrative verification.
Classification of woollen products from shoddy must be determined from raw materials and production processes because chemical testing cannot reliably separate shoddy percentage; apply the principles of Note 2(A) and Note 2(B)(ii) of Section XI, treating mixed-fibre textiles as composed of the single material that predominates by weight and selecting the heading by first determining the Chapter and then the applicable heading. Collectors may require subsidiary records and periodic inspections to ensure eligibility for concessional treatment.

Classification of polyester tow and staple fibre: duty payable at tow stage unless exempted, separate clearances require prior duty.
The circular clarifies that polyester tow and staple fibre are separately included in the tariff and recognised as distinct commodities; tow produced and cleared separately is chargeable to excise duty at the tow stage, and tow used as an intermediate in continuous manufacture must be treated as liable to duty before consumption unless specifically exempted.

Excise exemption for component parts extends to parts used in sub-assembly manufacture, subject to qualifying conditions.
Component parts intended for use in manufacture of diesel operated internal combustion engines are exempt under Notification 217/85-C.E., and this exemption extends to parts and sub assemblies used in the manufacture of those component parts, subject to observance of the other statutory and notification conditions.

Classification of HDPE blocks as materials in primary form permits excise levy at the block stage rather than as finished articles.
H.D.P.E. blocks of regular geometric shape, produced by compression moulding of duty-paid H.D.P.E. powder and requiring surface working before use as finished components, are to be treated as materials in a primary form and classified under the tariff entry for block/lump forms derived from the CCCN, permitting excise duty to be levied at the block stage rather than as finished articles.

Interest on warehoused goods: short grace for waiver when non-clearance arises from reasons beyond bonder's control, subject to verification.
The Board will consider waiving interest on warehoused goods for a brief post-payment period where non-clearance is due to circumstances beyond the bonder's control, provided cases are forwarded after verification of the genuineness of the reasons for not removing the goods following payment of duty.

AIT Carnet validity requirements: customs must accept only carnets with specified watermark, relief stamp and approved serial series.
Every AIT Carnet must bear an AIT logo watermark on all volets (pages) and a round relief stamp on the cover reading "ALLIANCE INTERNATIONAL" with "DE TOURISME A.I.T." in the centre; customs are to accept only carnets displaying these markings and authorised serial-letter series.

Handling of seized documents requires segregation of relied records and return of non relied records after show cause notice.
Immediate segregation of seized documents is required into those relied upon for framing charges and those not relied upon; retained documents intended for proceedings must be preserved, while documents not relied upon should be returned to the party against proper receipt once a show cause notice is issued, to reduce time taken for inspection.

Abolition of tobacco licence removes prior licensing requirement for purchase, storage and manufacture of unmanufactured tobacco.
The requirement to obtain an L-2 licence for purchase, storage or use of unmanufactured tobacco for trade or for manufacture of tobacco products has been removed. The Board rescinded the earlier notification, and Notification No. 41/79 has been rescinded by Notification No. 10/88, effective the date specified, so that no person is now required to take an L-2 (tobacco) licence; trade interests are to be informed.

Modvat credit inadmissibility for oxygen and acetylene used in cutting and welding; existing credits to be stopped and recovered.
Modvat credit on oxygen and acetylene used exclusively as consumables in oxy acetylene torches for cutting runners and risers and for welding is not admissible because these gases are not used in or in relation to the manufacture of the finished product. Practices allowing such credit must be stopped and remedial action to recover already allowed credits should be taken.

Uniform accounting year requirement permits liberal extensions for annual general meetings and financial year changes to ensure tax compliance.
A uniform accounting year is being introduced under the Income tax Act amendment, requiring alignment of companies' accounting year end for statement of affairs; authorities are advised to grant extensions for annual general meetings under the second proviso to section 166(1) and permission to extend financial years under the proviso to section 210(4) of the Companies Act, 1956, liberally and only to the extent permissible, to enable compliance with the tax amendment.

Cess on crude oil payment procedure requires producers to file monthly returns and remit assessed cess through PLA promptly.
Despatches must be covered by serialised delivery tickets with one certified copy returned by the refinery; producers must debit cess in a separate PLA per refinery upon receipt of test-verified net quantities. Within twenty days after month-end producers file a quadruplicate monthly return with PLA entries, receipted treasury challans and delivery tickets. The proper officer finalises assessment after scrutiny and serves a notice for payment within ten days if amounts remain unpaid. Regional offices bear payment obligation where production spans Collectorates, and specified distribution of return copies is required.

Exemption for foreign tourists: payments converted from foreign exchange by travel agents are not subject to hotel expenditure-tax.
Payments to hotels made in Indian currency obtained by conversion of foreign exchange brought into India through an authorised dealer by a travel agent on behalf of foreign tourists are deemed to have been made in foreign exchange and thus are exempt from expenditure-tax. Hotels need not collect or remit expenditure-tax on bills for such foreign tourists where payment will be made by the travel agent in converted foreign exchange, and the hotel's collection and monthly payment obligations do not apply in these cases.

Excise duty exemption for cycle forgings clarified: shaped parts qualify for unconditional exemption, others require Chapter X compliance.
Where a forging or forged product of iron or steel has acquired the essential character of a finished cycle or cycle-rickshaw part (by having the approximate shape or outline of the finished article, including blanks), it should be classified as the finished part and be unconditionally exempt from excise duty without Chapter X procedure; items lacking that essential shape or recognisability must follow Chapter X to ensure use in manufacture of exempted parts. Decisions on classification must be taken not below Assistant Collector level.

Duty-free inputs restrictions: FTZ inputs cannot be cleared to the domestic tariff area unless exemption notification permits.
Inputs procured duty-free within a Free Trade Zone for manufacture of export goods must be used for export only and may not be cleared to the Domestic Tariff Area; only capital goods may be cleared to DTA after a prescribed period subject to conditions and duty. Clearance of duty-exempt inputs to DTA absent express notification permission is unlawful and must not be permitted.

Classification of railway brake blocks as parts of rolling stock, not unmounted friction material, changing tariff treatment.
Railway brake blocks moulded on steel back plates are mounted brake linings and therefore do not fall within the heading for unmounted friction material; applicable HSN and chapter notes direct classification of mounted brake linings and brake-gear as parts of the machines or vehicles for which they are designed, making such brake blocks classifiable as parts of railway rolling stock under the railway parts tariff heading.

Customs duty obligation persists despite confiscation; contractual guarantor remains liable to pay unpaid customs duty under the Act.
Import duty is an independent, exigible obligation arising on importation and remains payable notwithstanding confiscation or imposition of penal consequences; a contractual third party liable under an agreement must pay the customs duty as if it had imported the goods, and recovery may be effected where auction proceeds fall short of the leviable duty.