Full deduction for charitable relief-fund contributions permitted when computing tax for TDS withholding.
Contributions to the Andhra Pradesh C. Ms. Cyclone Relief Fund qualify for full income-tax deduction as exempt income, and the tax authority directs that this deduction be allowed when computing total income for the purpose of calculating tax to be deducted at source, reducing the taxable base used for TDS.

Excise duty rate clarity for glassware: lower tariff provision governs when overlapping notifications create conflicting rates.
The Circular clarifies that the rate expressly prescribed for sub heading 70.15 applies irrespective of the method of production, and that the lower rate is the effective rate where two notifications overlap; to remove ambiguity references to heading 70.15 (and to 70.09) were deleted from the broader notification by a technical and clarificatory amending notification.

Modvat credit restriction: job-workers cannot claim credit when excise duty liability rests with the manufacturer.
Where job-work is performed on a manufacturer's inputs or partially processed inputs under rule 57F(4) of the Central Excise Rules, 1944, the excise duty liability is required to be discharged by the manufacturer and not by the job-worker; accordingly, job-workers are not eligible to avail Modvat/input credit on those inputs.

Non availment of modvat credit: merchant exporters without declared supporting manufacturers barred from certification under VBAL rules.
Certification of non availment of modvat credit may be issued only where the exporter is a manufacturer exporter or a merchant exporter whose supporting manufacturer falls within the Range jurisdiction and whose records (RG 23A, RT 12 and AR 4/AR 4A) are verified; merchant exporters who cannot identify or have not declared their supporting manufacturers are not eligible for such certification under the VBAL reversal and Duty Exemption Scheme rules.

Interpretative Rule amendment: exclude assembly-method complexities when applying tariff classification under the Harmonised System update.
Amendment to the explanatory note of Interpretative Rule 2(a): deletion of the word "simple" and addition of a paragraph specifying that complexities of the assembly method are not to be taken into account when applying the rule for tariff classification. The Harmonised System Committee's classification decisions and opinions are enclosed and directed for circulation to assessing officers for use in customs classification.

EPCG scheme monitoring strengthened requiring uniform licence registers, bond interest on defaults, and regular supervisory checks.
Customs must adopt uniform registers and monitoring formats for the Export Promotion Capital Goods (EPCG) Scheme, record bond and bank guarantee details on Release Advices, use prescribed time-diary and show-cause templates to track defaults, and amend bond language to make licence-holders liable for bond sums plus interest under relevant notifications; standing orders implementing these measures must be issued and registers supervised monthly and quarterly by designated officers.

Duty-free clearance of intermediate goods allowed when records verify exclusive use for export, subject to official verification.
In cases where intermediate goods and export goods are manufactured in the same factory and Chapter X procedures cannot be followed, duty-free clearance under Rule 13 should not be denied solely for that reason, provided the Assistant Commissioner of Central Excise is satisfied from manufacturer-exporter documents and records that the intermediate goods have been used exclusively for the manufacture of export goods.

Exemption scope for greenhouse equipment clarified: ultraviolet sheets qualify for EOU duty relief when essential to production under notification.
Ultraviolet plastic sheets used to make or erect green houses qualify as excisable goods eligible for exemption under Notification 136/94-CE when brought in connection with the production, manufacture or packaging of export articles listed in Annexure-II, and cultivation inside green houses is to be regarded as production activity for determining eligibility.

Service tax expansion to specific commercial services, applying tax on gross charges with tailored valuation rules.
Service tax is proposed to be extended to a specified list of commercial services and levied as a percentage on the gross amount charged to the client or customer, with service specific valuation rules: air travel agent value includes booking charges and commission but excludes airfare; goods transport operator value includes freight but excludes insurance; outdoor caterer value includes food, beverages and related articles; pandal/shamiana and mandap services include setup and catering charges; tour operator value includes accommodation, food and tour facilities; rent a cab value includes rental. The levy commences on a gazette notified date after enactment.

Classification of Di-Calcium Phosphate: animal feed grade classed under phosphates heading, not animal feed preparations under tariff rules.
Dicalcium phosphate of animal feed grade conforming to IS:5470-1969 is a separate chemically defined compound and, because its fluorine content (max 0.1%) places it outside Chapter 31, and it is not a preparation under Chapter 23, it is classifiable under sub-heading 2835.00 of the Tariff. Manufacture from bone does not change this classification; prior tribunal decisions on Chapters 23 and 31 do not affect classification under Chapter 28.

Form RT-12 amendment adds opening and closing balances to enable computerised verification of return entries.
Amendment introduces additional columns in Form RT-12 to record opening balance and closing balance for each invoice description and tariff heading to facilitate on-line computerised verification of RT-12 returns, and prescribes specific columns including unit, opening balance, quantities (manufactured, received, cleared), closing balance, value removed on payment of duty, rate of duty (and notification if claimed), duty paid/amount paid, and PLA MODVAT.

Adjudication powers revised: tiered allocation by duty involved, higher ranks handle fraud and valuation disputes.
Revision of adjudication powers establishes tiered allocation by amount of duty involved and nature of misconduct: fraud, collusion, wilful misstatement, suppression or intent to evade are to be adjudicated by higher ranks with notices issued by the same rank; non-fraudulent matters are distributed among Commissioner, Additional/Deputy Commissioner and Assistant Commissioner per monetary thresholds, while valuation, classification and most Modvat disputes remain with Assistant Commissioners without monetary limit; confiscation value does not affect jurisdiction; Additional Commissioners' orders appeal to the Commissioner (Appeals).

Provisional assessment verification required before adjudication to ensure show cause notices contain all relevant facts and avoid limitation errors.
The Board warns that failing to record or verify that assessments were provisional in the Show Cause Notice led to an adjudicator incorrectly treating the demand as time barred; it directs officers to verify assessment status and include all relevant facts in the Show Cause Notice before adjudication to avoid procedural errors.

Acceptance of Chartered Engineer certification as proof of installation allows service providers to substitute Central Excise certificates under EPCG.
Acceptance of a Chartered Engineer's Certificate is authorised as proof of installation of imported capital goods under the EPCG scheme in place of a certificate from the Assistant Commissioner of Central Excise for service providers, including hotels. This substitution is conditional on the importer furnishing a certificate from the Licensing Authority confirming fulfilment of export obligations. Manufacturer-exporters must still produce a certificate from the Assistant Commissioner of Central Excise or from the supporting manufacturer declared by the merchant exporter. Administrative public notices and standing orders are to be issued and copies forwarded to the Directorate of Drawback and related directorates.

Bond without security: facility extended to trading houses subject to existing conditional eligibility and procedural requirements.
Permits specified exporters to execute bonds without providing security or surety under the conditions set out in the Board's earlier circular, and extends that facility to Trading Houses on the same terms, requiring application of the identical eligibility criteria, procedural requirements and conditions for exemption from security or surety.

Provisional assessment monitoring: mandatory computerized tracking, monthly joint pendency meetings, certification, and commissioner review.
Directives require a computerised tracking system for provisional assessments covering bonds and bank guarantees and carrying forward differential amounts into returns; senior Technical and Audit Wings must hold monthly joint pendency meetings; Divisional Officers must certify in the Monthly Technical Report that provisional assessment registers are up-to-date; Commissioners must hold monthly review meetings with divisional and audit/technical officers, minute decisions, and review actions in the next meeting.

Pre-budget removal restrictions: self-removal suspended and declarations required, with commissioner power to permit limited exceptions.
Pre-Budget removal restrictions mandate suspension of Self Removal Procedure after 6.00 P.M. on the day preceding Budget Day and impose obligations on assessees to submit advance applications for Budget Day clearances and a declaration of the last invoice serial number and closing stock at 6.00 P.M.; non-compliance attracts penal action. Proper officers must be designated to receive applications, supervise removals and countersign invoices; Commissioners may permit provisional applications and limited relaxations for specific operational categories and must report such relaxations and duty recovery to the Ministry.

Securities lending scheme clarifies fungible share lending is not a transfer for capital gains treatment.
The Securities Lending Scheme allows a lender to deposit securities with a registered approved intermediary who may lend them to a borrower; beneficial interest and corporate benefits remain with the lender while title vests with the borrower who must return equivalent securities and corporate benefits. The approved intermediary issues receipts, may act as trustee, must maintain records, take collateral and fees from borrowers, guarantee return of equivalents (or make good losses), liquidate collateral on default and notify authorities. The Board clarified such fungible share lending is not an exchange constituting a "transfer" for capital gains purposes.

Securities lending not treated as transfer under income-tax law, preserving non-capital-gains treatment under the SEBI scheme for lenders.
The scheme permits an approved intermediary to lend deposited securities to a borrower for a specified period while title rests with the borrower and the lender receives fees; agreements must cover period, fees, collateral, return and dispute resolution. Because shares of the same company are fungible, receiving back an equivalent number of shares (even with different distinctive numbers) does not constitute an exchange of different assets and therefore does not amount to a transfer under the Income-tax Act for capital gains purposes.

Modvat credit admissibility affirmed for inputs used to make sand moulds when those moulds serve manufacture of dutiable castings.
A Tribunal larger bench held sand moulds are not marketable/excisable and that chemicals and resins used to make them are used in relation to manufacture of dutiable castings; in light of this, and divergent practice among Commissionerates, the Board has withdrawn Circular No. 29/88 and directed that pending disputes on eligibility of Modvat credit be considered in accordance with the Tribunal decision.