Tariff classification: machinery-class goods (e.g., reach stackers) fall under the machinery chapter and are not subject to vehicle import licensing.
Goods that are machinery (for example reach stackers and forklifts) specifically covered at the relevant tariff code within the machinery chapter are not to be classified under the vehicles chapter; therefore Import Licensing Notes No. 1 and 2 of the vehicles chapter do not apply to those goods. A prior circular on special purpose vehicles is limited to items classifiable under the vehicles chapter only.

Refund of excess TDS: procedure for adjustment or AO claim, subject to a two year time bar.
Refunds of excess TDS equal the difference between actual payment to the Government and tax deductible at source. Within the same financial year the excess can be adjusted in the next quarter's TDS statement; beyond that year the deductor must apply to the Assessing Officer (TDS) and no refund claim is permitted after two years from the end of the financial year in which tax was deductible. The circular is applicable for claims up to 31 3 2010 due to processing provisions for TDS statements and refunds.

Assignment of Show Cause Notice transfers adjudication responsibility under the Customs Act to the port customs commissioner.
Assignment of a Show Cause Notice issued by the Directorate of Revenue Intelligence to the Commissioner of Customs (Import), Sahar Air Cargo Complex, Mumbai, under powers conferred by the Notification issued under section 4(1) of the Customs Act, 1962, thereby transferring adjudication responsibility in the matter of M/s Inter-Continental (India) & Others.

Service tax on restaurant services: gross value exemption and valuation rules; hotel tariff based levy with exemptions.
The circular operationalises new and amended Service Tax entries effective May 1, 2011, setting valuation and exemption rules: restaurants receive a 70% gross value exemption only if no Cenvat credit is claimed and service charges are included in taxable gross value while tips are excluded; short term accommodation is taxed based on a declared tariff definition with exemptions below the threshold and a 50% valuation concession absent Cenvat credit; life insurance taxation allows an option to tax the non investment premium portion or apply a prescribed valuation where no break up is provided.

Document Management System rollout requires combined service payments before printed customs documents are released.
Implementation of a Document Management System at Air Cargo Complex will introduce bar coding, high-speed scanning and electronic storage of import and export dockets effective 1 May 2011; a vendor will implement the system and trained officers will have access. Under a tripartite arrangement, M/s CMC Ltd will collect DMS charges alongside existing service charges, issue two separate coupons and maintain separate accounts, and both coupons must be paid to obtain printed bills and related documents; copies of an importer/exporter's own documents require an official request to the Additional Commissioner in charge of DMS.

Service through electronic mode accepted where members are given opportunity to register emails; otherwise other modes apply.
Service through electronic mode satisfies Section 53 of the Companies Act where the company has obtained members' e mail addresses after giving each shareholder an advance opportunity to register and update those addresses. If a member has not registered an e mail address, service must be effected by other modes authorised under Section 53. The clarification relies on the Information Technology Act for legal validity and responds to discontinuation of the postal 'certificate of posting'.

E-Payment of customs duties enables online payment via ICEGATE and designated bank, triggering automatic movement to the examination queue.
Establishes an electronic payment mechanism via the Customs E-Payment Gateway on ICEGATE for import duty payment at ICES 1.5 locations (ICD Waluj and ICD Maliwada), allowing internet-enabled SBI account holders to select unpaid TR-6 challans, pay through designated bank internet banking pages, obtain a cyber receipt, and have payment confirmations sent electronically to ICES so the Bill of Entry is automatically moved to the examination queue; a VERIFY option addresses incomplete transactions and physical proof of payment is not required for clearance.

Prosecution monitoring: update MCA21 prosecution module to capture compliance reports on actions against defaulting companies.
The Secretary directed that Compliance Reports on prosecutions under the Easy Exit Scheme be monitored through MCA21 and included in progress reports; observed omissions where prosecutions "filed" and "yet to be filed" were not updated on the portal. Regional Directors are requested to update the prosecution module on MCA21 so requisite data on filing actions against defaulting companies is captured for monitoring.

Simplified amalgamation procedure ensures Cabinet-approved government company mergers proceed after unanimous member approval and creditor assent.
A simplified administrative procedure for amalgamation under section 396 requires Cabinet approval that the merger is in the public interest, member resolutions passed by members holding 100% of voting power with full disclosure of assets and liabilities, and creditor assent either unanimous or by ninety percent by value plus certification of no objection. After submission of corporate resolutions and Cabinet confirmation, the Central Government may notify the amalgamation, effect transfer of assets and liabilities to the transferee or resulting company, preserve pre-existing rights and proceedings, cancel registrations of dissolved transferor companies, and require the Registrar to strike off their names.

Service tax on visa assistance: not leviable when individual pays facilitators; leviable if employer engages or pays.
Assistance provided directly by visa facilitators to individuals for obtaining visas, where statutory fees are remitted to authorities and the service charge is paid by the applicant, does not fall under taxable services and is not liable to service tax under section 65(105). Service tax becomes payable where the facilitator acts as agent of recruitment or of a foreign employer (supply of manpower), or where a business entity pays the service charge on behalf of its employees (business support service).

Service tax accounting codes for new restaurant and short-stay accommodation services establish revenue, interest and refund coding.
Allocation of account codes under Major Head "0044-Service Tax" for two taxable services introduced by the Finance Act, 2011: specified three-part codes for tax collection, other receipts (interest/penalty) and deduct refunds (for revenue authorities), with directions to book education cess to designated heads, replace any NSDL dummy codes with the prescribed codes, and issue trade/public notices; table descriptions do not restrict service scope.

Prohibition on beef imports: strict customs enforcement and investigations required for suspected products containing beef.
Import prohibition on beef and beef-containing products is reiterated: all imports of beef in any form are prohibited; bulk consignments must carry an exporter's shipping declaration that they do not contain beef; consumer-pack edible products must bear a label declaration that they do not contain beef. The Board directs strict implementation, investigation of reported imports such as Gummy Pizza, suitable legal action for violations, and reporting of findings to the Board.

Export registration requirement for Assam Comilla cotton: contracts must be registered and shipments completed within the prescribed timeframe.
Export of Assam Comilla Cotton is permitted only on registration of export contracts with DGFT; applicants must file to RA Guwahati the export contract, either an irrevocable LC authenticated by an Indian bank or bank proof of advance payment, a prescribed declaration, and IEC. For countries other than Japan, proof of past exports to the destination is required. Where documents are in order the RA issues a Registration Certificate, shipments must be completed within the prescribed period and proof of export furnished; non-performance triggers debarment and penal action under the Foreign Trade Act.

Service tax audit manual sets updated audit principles requiring all service tax audits to follow the Manual and extant instructions.
The Service Tax Audit Manual 2011 has been approved and will be circulated by the Directorate General of Audit; all Service Tax audits must henceforth be conducted in accordance with the Manual's principles together with extant instructions, the Manual is for departmental officers only, and suggestions or corrections should be brought to the notice of the Directorate General of Audit.

Authorized Courier qualification extension allows courier employees to meet customs electronic filing requirements under courier regulations.
The Board directed that IEC Branch Code in Form 'D'/CBE XIII and Form 'E'/CBE XIV and AD Code in Form 'E'/CBE XIV be treated as non mandatory, while mandatory IEC Code for low value dutiable consignments in Form 'D'/CBE XIII continues. Transition for the examination requirement under Regulation 8 of CHALR, 2004 is extended to 31 December 2011; as a one time measure employees of Authorized Couriers may appear in the Regulation 19 examination to enable them to handle customs work, but they remain barred from working for CHAs. Authorization and record retention rules for consignee/consignor were clarified.

Jurisdictional issuance of show cause notices required; local commissioners must issue or reissue notices where not time-barred.
Only customs officers assigned assessment and reassessment functions in the territorial jurisdiction of import are competent to issue show cause notices; therefore show cause notices arising from DRI and preventive investigations must be issued or, if not time-barred, reissued by the jurisdictional Commissioners, with legal options being explored for notices that would be barred by limitation.

Declaration of Intent requirement: EOUs may claim Chapter 3 benefits for past shipments without the declaration; authorities to finalise claims.
EOU shipments are not treated as free shipping bills by Revenue and the earlier DGFT clarification is withdrawn; EOUs may claim Chapter 3 benefits without a Declaration of Intent for exports made from 1 April 2008 to 31 December 2010. Regional Authorities must finalise rejected claims for that period and EOUs are allowed a one month grace period to file delayed claims. The post 1 January 2011 regime under Para 3.11.8 of HBP v1, as amended, remains in force.

Declaration of intent requirement for EOU shipping bills clarified - EOUs eligible for Chapter 3 benefits without declaration for specified period.
EOU shipping bills are not treated as free shipping bills and the earlier DGFT clarification is withdrawn; EOUs may claim Chapter 3 benefits without a Declaration of Intent for exports from 1 April 2008 to 31 December 2010, RAs must finalise rejected claims for that period and a one-month grace period is provided for filing claims.

Import restriction relaxation: wider trim cutting waste permitted for Chindi rug manufacture enabling licence-free clearance.
Import of trim cutting waste in continuous-length fabric trims used for Chindi rug manufacture is exempt from licence restrictions under the ITC (HS) policy for heading 6310, with the permitted maximum width revised to ten inches; field formations are to permit licence-free clearance of such imports and issue suitable instructions accordingly.

Labeling in bonded warehouses permitted with Warehousing BOE, mandatory full ex-bond examination and compliance verification.
Extension permits labeling in bonded warehouses where space is available: importers may file a Warehousing Bill of Entry, obtain an endorsement that DGFT labeling compliance will be verified prior to de-bonding, label within bonded premises, and have the Bond Officer ensure compliance by a full examination and endorsement on the Ex-bond Bill of Entry (hard copy and EDI as applicable). This facility is limited to goods difficult to label at ports/CFS due to size or sensitivity, and labeling/re-labeling in bond is treated as manufacture subject to the Manufacture and Other Operations in Warehouse Regulations, 1966.