Unused C.E. stamps include those affixed on uncleared matches, so security must cover all issued stamps.
The term "unused" in the proviso to Rule 65(4) covers central excise stamps whether fixed on uncleared matches or still to be affixed; security must be determined on the basis of the total stamps issued on credit, and urgent action should be taken to recover any excess credit availed.

Code number allotment for exempt SSI units required; codes must appear on invoices and compliance reported promptly.
The circular mandates immediate allotment of identifying code numbers to SSI units exempted from licensing control under Notification No. 111 (as amended), requires that those codes be displayed on bills, invoices and delivery challans issued by the units, and directs submission within a short period of the number of exempted units required to file declarations and the number of codes allotted.

Exemption applicability clarified: licensing status determines which SSI circulars govern entitlement to value/quantity-based exemptions in practice.
Instructions dated 27-6-1986 and reiterated on 1-2-1988 apply only to SSI units exempted from licensing control that avail exemptions based on value or quantity of clearances; instructions dated 29-5-1984 apply to licenced SSI units availing value/quantity-based exemptions in a financial year, thereby distinguishing applicability by licensing status and confirming which circular governs reporting of progressive totals.

Adjudicatory powers expanded for Additional Collectors to decide show cause notices with allegations of suppression or fraud.
Additional Collectors are authorised to issue and decide show cause notices involving allegations of suppression of facts, mis-declaration, fraud, collusion etc., in proceedings under section 11A and rule 9(2) where the duty involvement does not exceed Rs. 5 lakhs; cases with duty involvement above that threshold remain for decision by the Collector. Earlier Board instructions on adjudicatory allocation are modified to this extent.

Date for determination of cess on crude oil: removal date governs and revised cess applies from March 1, 1987.
The date for determination of the rate of cess on crude oil is the date on which the crude oil is removed from the place where it is produced, and the taxable quantity is the quantity received in the refinery or factory. Accordingly, the revised cess is applicable with effect from 1-3-1987 on crude oil removed from the place of production.

Surcharge on tax deducted at source applies from enactment; non compliance before public announcement will not attract penalties.
A five percent surcharge on income tax was made applicable to specified categories of tax deducted at source from the date the Bill was enacted, increasing required TDS on payments such as interest, lottery and horse race winnings, insurance commission and contractor payments. Where, for payments made after enactment but before public announcement, the surcharge was not added to TDS, the deductor or company will not be treated as an assessee in default for interest or penalty purposes, and prosecution will not be initiated.

Modvat credit admissibility: thinners used in paint manufacture qualify for credit unless classifiable under the relevant tariff chapter.
Modvat credit for thinners used as diluents in the manufacture of paints is normally available under Rule 57A where the thinner performs a direct role in producing the final product; however, if the thinner is classifiable by composition under the relevant tariff chapter for excluded products, Modvat credit is not available and cases should be decided accordingly.

MODVAT eligibility and documentation scrutiny central to factory inspections, alongside production, accounting and clearance controls.
Checklist directs senior Central Excise officers to conduct preparatory study of manufacturing processes and tariff positions, then verify on-site licensing, prescribed registers (including RG 1 and production accounts), and reconcile physical stocks. Officers must analyse revenue trends, inspect production accounting against production/packing reports and capacity, review P.L.A. entries, classification lists, price lists and clearances for related party transactions or value manipulations. Special regime checks cover proforma credit permissions, movements under bond (rule 56B), MODVAT (rule 57A) eligibility and documentation, Chapter X bonds, RT 12 timeliness, sampling procedures, export bonds, audit objections, court cases and arrears recovery.

Compliance checklists for excise refund claims and RT 12 returns require specified verifications, reconciliations and officer certification.
Prescribes procedural checklists and supervisory responsibilities for verifying refund claims, RT 12 returns and classification lists, requiring attachment of cyclostyled checklists, specific documentary and ledger reconciliations (jurisdiction, export evidence, time bar, prior refunds, PLA/Modvat credits, GP1/GP2 and book balances), provisional assessment where classification or price approvals are pending, and signature certification by the inspecting officer upon completion of checks.

Valuation of captively consumed goods: current year cost of production governs assessable value, not prior year figures.
The valuation principle requires using the current year cost of production to determine assessable value for captively consumed goods under Section 4; costs of raw materials, labour and related inputs for the current year are material and can be ascertained through established accounting principles or with the assistance of a cost accountant, so prior-year cost figures are inappropriate.

Definition of year clarifies exemption timing under notification, adopting calendar year for application of quantitative cap.
The term "Year" in Notification No. 6/88-CE, which exempts fents and rags of man-made fabrics subject to a quantitative restriction of 5% of total clearances of man-made fabrics from a factory, means the British calendar year running from January to December, and the quantitative limit is to be computed within that January-December period.

Classification of polyvinyl alcohol solution confirmed as primary plastic form, affecting excise classification and pending assessments.
Polyvinyl alcohol solution used as an adhesive is classifiable as a primary form of plastic under Chapter 39, sub heading 3905.20 rather than as a 'prepared adhesive' under Chapter 35; the Board, in consultation with the Chief Chemist, directs communication to field formations and trade and requires pending assessments to be decided accordingly.

Classification of fruit pulp drinks: fruit pulp beverages are classifiable under heading 20.01 rather than 22.02.
Fruit pulp based drinks containing substantial natural pulp are to be classified as fruit juices or preparations of fruits rather than as beverages merely flavoured with fruit. HSN explanatory notes treat juices with pulp in suspension as fruit juices, and technical advice confirms that flavouring implies minute additive quantities distinct from a product whose main ingredient is fruit pulp; accordingly such products should be allocated to the tariff provision for fruit juices/preparations of fruits, modifying earlier contrary guidance.

Brand name definition permits excise exemption for certain medical dressings despite manufacturer name and licence on labels.
The Board treats the notification's definition of Brand name as having the same scope as Chapter 30's brand name note and notes that manufacturer name and drug licence number are statutory labelling requirements for drugs. Consequently, the exemption under notification No. 185/87 CE should not be denied to absorbent cotton wool, gauze, bandages and similar goods under sub heading 3004.00 merely because the manufacturer's name or drug licence number appears on the label; trade should be advised and pending assessments revised accordingly.

Rebate procedure for tea exports clarified; pre-existing claims should follow the prior notification procedure pending budget rule changes.
For exports of tea prior to the Budget notifications, exporters despatching from places other than tea gardens may follow the earlier procedure prescribed under Notification No. 171/81, while the newly issued Budget notifications will govern procedural requirements for future exports; a trade notice should be issued to inform the trade.

Classification of skimmed milk powder sweepings: packaging for sale determines tariff subheading and dutiability, not purity.
Floor or chamber sweepings arising from manufacture are to be treated as skimmed milk powder for tariff purposes; purity or fitness for human consumption is immaterial. If the material is put up in unit containers and intended for sale, it is classifiable under the subheading for skimmed milk powder packaged for sale; if not put up for sale in unit containers, it is classifiable under the residual subheading for skimmed milk powder not packaged for retail sale.

Classification of grooved copper contact wire affirmed under chapter 74; chapter notes govern tariff heading determination.
Grooved copper contact wire is more appropriately classifiable under the copper wire provision of Chapter 74, applying Chapter Note 1(ii) and Chapter Note 1(iv) to Chapter 74, and should be treated accordingly for tariff and excise purposes.

Classification of Shell Sand: treat as article of stone like materials, not as mineral substance or prepared binder.
The Department of Revenue endorses classification of Shell Sand (rosin coated sand) under sub heading 6807.00 as other articles of stone, plaster, cement, asbestos, mica or similar materials, because Note 2 to Chapter 25 excludes it from mineral classification and sub heading 3823 covers only prepared binders, not sand grains coated by such binders; trade is to be informed and pending assessments decided accordingly.

Waste gas not goods: sniff gas treated as non excisable under central excise; pending assessments to be finalised accordingly.
The Board reaffirmed that sniff gas, a waste effluent from liquid chlorine manufacture and found by the Dy. Chief Chemist to be incapable of sale, is not "goods" and therefore not excisable; pending assessments are to be finalised on that basis and trade advised.

Assessable value principle: additional monetary consideration must be added to declared assessable value, prompting adjusted demands.
Where price is not the sole consideration for sale of excisable goods, the money value of additional consideration received from buyers must be added to the assessable value already declared or approved; this follows the Law Ministry's advice and is to be followed pending the Attorney General's opinion, with show cause notices and demands to be issued accordingly.