Time-barred demands: strict adherence to timely issuance of show cause notices required to prevent revenue loss and officer liability.
Failure to issue timely show cause notices on audit objections results in demands becoming time barred, causing loss of central excise revenue. The Board directs strict compliance with earlier instructions so that proper officers raise demands in time by issuing show cause notices, warning that failures will attract appropriate action against responsible officers.

Drawback recovery procedure: customs must use RBI XO.S. export non-realisation data to initiate recovery and monthly reporting.
Customs must collect and correlate Reserve Bank XO.S. statements-now including Shipping Bill numbers and Port of Shipment-with their records to identify exports whose proceeds were not realised and initiate recovery of drawback under Rule 16A, while furnishing a monthly consolidated proforma to the Ministry tracking cases, amounts demanded, amounts realised and outstanding balances.

Customs duty exemption for inputs linked to diamond exports enables duty-free import of specified adhesives and powders under the pass book scheme.
Notification No. 79/96-Cus dated 8.10.96 exempts imports of special industrial adhesives, gums and solutions, and synthetic diamond powder up to 1% of the FOB value of cut and polished diamond exports from whole of basic customs duty, the special duty under the Finance Act provision cited, and the additional duty under the customs tariff Act, when imported by exporters operating under the Diamond Credit Pass Book Scheme.

Service tax minor head allocation clarifies deposit codes for advertising, courier and radio paging services under service tax framework.
The notice designates distinct minor head codes for deposit of service tax collections on advertising services, courier services, and radio paging services and directs use of the adopted TR 6 challans for depositing those service tax receipts under the Major Head for service tax, prescribing specific accounting identifiers to be used for collection and deposit of service tax for the specified services.

Interest waiver for advance tax shortfall now allowed without requirement that judicial decisions be in the assessee's own case.
The Board modifies its guidance on reduction or waiver of interest for advance tax shortfall by removing the requirements that the judicial decision be in the assessee's own case and that a retrospective amendment or judicial decision occur after the end of the relevant previous year; past petitions rejected for lack of this clarification are to be reconsidered in accordance with this modification and the earlier order.

Waiver of direct from factory export condition permits identifiable duty paid goods exported after verification to claim rebate.
Waiver of the requirement that excisable goods be exported directly from the factory or warehouse will be allowed where exporters submit proof satisfactory to the rebate authority that specific goods are clearly identifiable and correlatable to duty paid factory clearances; technical deviations without revenue implications may be condoned. For future exports, exporters must follow a prescribed AR 4 verification procedure-apply to the Range superintendent where goods are stored, submit AR 4 in six copies with supporting invoices/duty payment documents and marks/numbers, obtain verification endorsement by a deputed Central Excise Officer, pay supervision charges, and comply with specified distribution and retention of AR 4 copies and post audit requirements.

Failure to deduct tax - deductor need not face demand once deductee has paid the tax.
Where a tax deductor satisfies the officer in charge of TDS that tax has been paid by the deductee assessee, the Board's instruction directs that any demand envisaged under section 201(1) should not be enforced, making enforcement contingent on the deductor demonstrating actual payment by the deductee.

Centralised registration for courier agencies enables regional offices to register and remit service tax with specified billing and reporting controls.
A courier agency may centralise service tax registration and payment at a regional office by submitting a written option to the Assistant Commissioner (Service Tax Cell) of the focal point Commissionerate, enclosing branch locations and undertaking to pay service tax on credit transactions by the fifteenth day of the month following the month in which credit bills are raised. The focal point Assistant Commissioner will endorse the option and coordinate endorsement of ST-2 to other Commissionerates where branch offices fall, while the regional office must allocate distinguishable serial numbers on airway bills, compile branch-wise monthly statements with enclosures and attach them to the ST-3 return for reconciliation and assessment.

Notice under section 158BC: revised ITNS 274 format approved; officers to print and distribute updated notice for assessments.
An amendment to the governing provision effected by the Income-tax (Second Amendment) Ordinance, 1996 modifies clause (a) and requires a revised format of the prescribed notice form ITNS 274; the Board has approved the revised ITNS 274, a copy is enclosed for implementation, and officers are instructed to print the notice locally and supply copies to Assessing Officers for use under the amended provision.

Invoice marking requirement permits temporary stamping of existing stationery until pre-printed forms with required dealer marks are used.
Dealers may use existing stationery if they mark all copies of each invoice by rubber stamp or typewriter to indicate FIRST STAGE DEALER or SECOND STAGE DEALER until they obtain new pre-printed stationery or until 31.3.97, whichever is earlier; from 1.4.97 invoices must be on pre-printed stationery with the required marks.

Cumulative loss allowance for NGL evaporation permitted, subject to monthly adjustment and a prescribed ceiling on allowable shrinkage.
The Board recognises that Natural Gasoline Liquid (NGL) incurs evaporative and handling losses during loading, unloading, transportation and storage and prescribes a cumulative loss allowance to cover storage, transit and handling losses collectively, subject to a maximum ceiling and monthly adjustments and determinations of loss.

Appeal disposal norms increased; reporting required where remands are excessive and adjudication deficiencies occur to reduce pendency.
Commissioners (Appeals) must adopt increased disposal norms for valuation, classification and mixed-case appeals, maintain remand cases normally below a ten percent threshold with explanatory reports to the Chief Commissioner when exceeded, and submit separate reports identifying adjudicating officers whose orders show non-application of mind, non-speaking reasoning, misinterpretation of law or tariff, contradiction of Board instructions, or breaches of natural justice to enable corrective action and reduce appellate pendency.

Show cause notice requirement: issue notices when serious offences or legal questions arise; waiver not permitted.
Where prima facie matters involve show cause notices relating to serious offences, high-stakes adjudication, or substantial legal questions, the Board directs that the option to waive issuance of the notice must not be exercised; such notices should be issued and served. Parties may file replies promptly and request expedited hearings, but expeditious adjudication does not replace the mandatory requirement to issue and serve the notice in these categories of cases.

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.

Special procedure for search assessments: Ordinance amendments apply only to searches initiated on or after the effective date.
The Ordinance amendments to the special procedure apply only to block assessments from searches initiated on or after 1 January 1997; searches initiated on or before 31 December 1996 remain governed by the prior Chapter XIVB. For searches before 1 January 1997, no interest or penalty will be levied, assessment orders must be approved by the Commissioner, the first appeal lies with the appellate tribunal, prosecution for failure/delay in filing the block return will not be launched, and the limitation period for passing the block assessment order is one year from the end of the month in which the last search or requisition authorisation was executed.

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.

Approved investments: primary issue shares of public companies qualify for capital gains exemption, subject to Board application procedures.
Shares issued in a primary public issue are treated as approved investments for capital gains exemption under sections 54EA and 54EB; the procedural and utilisation guidelines applicable to bonds and debentures apply equally to such shares, including the application procedure to the Board and the prescribed manner of using the investible capital, and "public company" is to be read as per the Companies Act definition.

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.

Discharge of export obligation: licensing certificate plus endorsed DEEC Part II suffices for bond waiver under EPCG.
Production of a certificate from the Licensing Authority together with DEEC Part II duly endorsed by the proper officer of Customs at the port of export is sufficient evidence to consider discharge or waiver of the export obligation bond; DEEC/Export Promotion copies of Shipping Bills should no longer be insisted upon.