Admissibility of money credit: allow interim claims where collectors verify private records showing specified oils were actually used.
Money credit under Notification No.46/89-CE should not be denied during the interim between the notification's date and issuance of Trade Notices if the Collector, on the basis of the assessee's private records, is satisfied that the specified oils were actually used for the purposes stated in the notification; the same practice as under Board Circular No.24/89-CX.8 is to be followed and pending cases decided accordingly.

Modvat credit eligibility: industrial X ray films used for quality control are not treated as inputs and are excluded from credit.
The Board concluded that industrial X ray films used to radiograph welds and detect defects serve to maintain the quality of the final product and therefore do not qualify as inputs for the purpose of permitting Modvat credit; trade and field formations are to be informed and receipt acknowledged.

Deduction under section 80HHC applies after allocation of composite profits under rule 8, reducing taxable export income.
The circular directs that the deduction under section 80HHC for tea growers and manufacturers is to be allowed only after the composite profit is allocated under rule 8 to determine the income chargeable to tax under "Profits and gains of business and profession"; the deduction is then computed with reference to that taxable business portion and apportioned in relation to export turnover.

Time limit for disposal of Rule 57F(2) applications enforced; field formations must dispose applications promptly and strictly.
The Board reiterates that applications seeking permission under Rule 57F(2) for opting into or out of the MODVAT scheme must be disposed of within the seven day time limit previously laid down; field formations are directed to adhere strictly to this time frame and to dispose of such applications immediately.

Bank guarantee reduction for rewarehousing permits eligible exporters to post lower security for inland warehouse transfers.
The Central Board of Excise & Customs has modified existing re-warehousing instructions to allow Established Export Houses and Trading Houses to furnish a reduced bank guarantee in lieu of the previously required higher guarantee when transferring imported goods from major ports to inland warehousing stations, with all other conditions remaining in force except as expressly amended.

Classification of bus-ducts as insulated conductors under tariff law, with detachable accessories classified separately under their own headings.
Bus-ducts composed of aluminium conductors supported on insulators within a metal duct, incorporating isolation and linking provisions and supplied with auxiliary devices, are classifiable under heading No.85.44 as insulated electric conductors; lightning arrestors, surge suppressors and potential transformers supplied with them must be classified separately under their own headings per HSN explanatory notes and Rule (4) interpretation.

Cottage industry classification clarified under income-tax rules: use of power, workforce size, and ownership guide eligibility determinations.
Clarification directs that for section 80P(2)(a)(ii) an industry not required to be registered under the Factory Act may be treated as a cottage industry; the use of power and number of workers are limited tests and ownership by the worker or a cooperative group is an additional criterion. Authorities should apply these broad guidelines flexibly in each case when assessing eligibility.

Classification of DDT as insecticide: treated under Heading 38.08 for central excise regardless of bulk or retail form.
DDT Technical is classifiable under Heading No. 38.08 of the Central Excise Tariff when meant for use as an insecticide; the Tariff dispenses with the HSN retail sale concept, so DDT in bulk or for retail sale falls under Heading 38.08. Circulate guidance to field formations and trade and finalise pending assessments accordingly.

Opinion of Branch Section of Ministry of Law should be obtained and personalised liaison ensured for timely, substantive legal advice.
Referral to the Branch Section of the Ministry of Law is required for local court matters; the Branch Sectt. must render its own reasoned opinion rather than merely forwarding counsel's submission. The Branch Sectt. should assist Collectors of Customs and Central Excise owing to local judicial familiarity. Liaison must be maintained at an appropriate level and personal rapport developed so departmental views and legal issues are fully conveyed, and references should be made personally and in good time to secure prompt, substantive advice.

Modvat credit ineligibility for dry battery cells reaffirmed, excluding them as inputs for electronic quartz clock manufacture.
Modvat credit for dry battery cells used in electronic quartz clock manufacture is inadmissible; the Board reaffirms its prior instruction treating battery cells as non-qualifying inputs for Modvat credit and directs trade and field formations to be informed and to acknowledge receipt.

Scope of immediately before: inputs must be in stock and available for verification before input credit is allowed.
The term immediately before must be read with the sub condition that inputs be lying in stock; inputs received prior to the dated acknowledgment must be physically present and available for verification, and credit of duty may be allowed only after such verification.

Retrospective effect of Board guidelines affirmed: duty set-off instructions for MEG to polyester manufacturers apply to pending cases.
The Board's 23-11-1987 guidelines permitting set-off of duty on MEG for PSY/RFY manufacturers without captive poly-condensation plants are clarificatory and may be given retrospective effect. The North Zone Conference held they could apply retrospectively; the Board agreed and directed that pending cases be finalised accordingly and that the clarification be communicated to field formations and trade.

Central Act supremacy prevents state relief notifications from staying company public deposit repayment proceedings under section 58A(9).
An earlier circular that stayed monetary liabilities and proceedings for companies declared relief undertakings has been withdrawn because Central Act supremacy precludes State declarations from suspending the Central law; applications and actions under the Central statutory repayment mechanism are to be processed immediately for such companies.

Classification of Drop Dies clarified under the tariff heading for forged articles, directing reclassification and finalisation of pending assessments.
Drop dies used to manufacture forged steel articles are heavy two part machined steel blocks used with a ram and sow on power hammers; the HSN Explanatory Notes treat drop dies as classifiable under Heading 8207, and the Board has clarified that drop dies are appropriately classifiable under Heading 8207 of the Central Excise Tariff Act, 1985, directing field formations and trade to be informed and pending assessments finalised accordingly.

Classification of processed-yarn terry-towelling fabrics: fabrics not processed after weaving remain classifiable as unprocessed for tariff purposes.
The Board decided that jacquered terry-towelling fabrics manufactured from bleached, dyed or mercerised yarn but not subjected to bleaching, dyeing or similar processing after weaving are classifiable under the sub-heading for terry towelling not subjected to any process; HSN sub-heading notes relied upon by field formations are not incorporated in the Central Excise Tariff and therefore are not determinative for classification.

Classification of securities as stock in trade alters deduction of valuation losses and taxation of net interest.
Securities held by banks are to be regarded as stock in trade, so valuation losses debited in the books are treated like other stock in trade losses for tax purposes. Interest payments and receipts on securities, including broken period interest, are revenue in nature; only net interest on securities is taxable as business income.

Visible layer test determines tariff classification of waterproofed fabrics: visible coating leads to coated fabric heading; absence yields waterproofed heading.
The operative classification test is whether the water proofing process produces a visible, continuous layer on the fabric surface: a visible layer warrants classification as a coated/impregnated fabric under the coated textile tariff heading, whereas absence of a visible layer (mere residues or uneven deposits) yields classification as waterproofed cloth under the textile heading for water proofed fabrics, subject to the base fabric requirement; the visible layer must be distinguished from residue and interpretative tie breaking favors the coated classification when a visible layer exists.

Surcharge exemption clarified: non-resident taxpayers charged under section 172(4) owe no surcharge on occasional shipping profits.
The circular clarifies that, following amendment by the Taxation Laws (Amendment) Act, 1991 and the Finance Act, 1990, no surcharge is payable by a non-resident taxpayer where income-tax is charged in respect of profits of non-residents from occasional shipping business under the relevant Income-tax Act provision, and that paragraphs 3 and 4 of Circular No. 591 dated 30-1-1991 should be read as modified accordingly.

Taxability of laminated non woven fabrics: coating that creates a distinct commercially identifiable product attracts excise liability again.
The Board holds that when coating/lamination of duty paid non woven fabric produces a finished article with a distinct name, character and use, that emergence constitutes a process of manufacture and the finished coated/laminated fabric is excisable again under the same tariff chapter even if raw material and product fall in the same heading.

Tax Deduction Certificate Forms replaced, introducing form-specific issuance rules and revised annual TDS return deadlines.
The circular replaces the unified TDS certificate with Form No.16, 16A and 16B, allocating each form to specific deduction heads and making the new forms effective for certificates issued after 28th February, 1991. It prescribes that Forms 16 and 16A may be printed privately in prescribed proforma, while Form 16B is to be on serially numbered government-printed book forms unless computerised issuers are permitted by the Commissioner. Certificates must be furnished within time-limits under rule 31 and failure to comply attracts penalty under section 272A.