Exemption scope for cotton waste clearances narrowed, raising excise and customs liability questions for EOUs during the interim period.
Scope of exemption for cotton waste cleared by 100% EOUs: Notification No. 8/96 CE was interpreted to exempt only duties specified in the Central Excise Tariff Schedule and not the entire excise levy, so EOUs remained liable to discharge amounts equivalent to customs duties on DTA clearances, with exemption applying only to additional customs duty and not basic customs duty. An ambiguity persisted until a subsequent notification restored full exemption; the Board proposes invoking statutory recovery provisions for the intervening period and seeks urgent unit wise information on EOUs, demands raised, confirmations, payments and related details.

Proviso to Section 28 permits fresh show cause notices where wilful misstatements extend the limitation period.
Where wilful misstatements, suppression of facts or submission of manipulated or fabricated documents by importers, exporters or their agents are established, a fresh show cause notice may be issued under the proviso to Section 28 to invoke the extended limitation period; departments are directed to take necessary action to safeguard Government revenue by issuing such notices.

Customs Duty Exemption denial for acrylamide as synthetic adhesive affirmed; claims rejected due to misrepresentation and non-adhesive use
A circular states that acrylamide is not entitled to Customs duty exemption under Notification No. 203/92 Cus when imported as a claimed 'Synthetic Adhesive' for leather goods manufacture; investigations and a technical opinion show acrylamide is not used as an adhesive and importers obtained exemptions through misrepresentation and fabricated documents.

Appeals against remand orders should be avoided; appeal only when remand contains legally improper directions and seek prior clearance.
The Board advises that appeals should not be filed against Commissioner (Appeals) orders that simply remand cases for de novo adjudication; an appeal is warranted only if the remand contains legally improper directions. Jurisdictional Commissioners must avoid unwarranted or frivolous litigation and, where possible, obtain prior clearance from the Chief Commissioner before filing such appeals.

Commodity classification clarifies honed marble is treated with polished marble and its import is restricted.
Honed marble is to be classified the same as marble blocks, slabs and tiles under EXIM Code No.68022101 within EXIM heading 68.02 of the ITC (HS) 1997-2002; it is not a separate tariff category and its import is restricted. This clarification applies to consignments imported before Notification No. 7/97:02 dated 24 June 1997 and is issued by the Directorate General of Foreign Trade.

Classification of components: extensive on-site manufacturing can preclude treating imported parts as complete goods under interpretative rule.
Treatment of imported CTV components as complete television sets applies only when imports require solely assembly operations and retain the essential characteristic of the finished article. Components subjected to further working operations to reach finished state-for example, populating bare PCBs and other elaborate manufacturing processes-should not be assessed as complete articles. Field officers are directed to consider the extent of on-site manufacturing work when classifying such imports.

Deemed export benefit extended to fertilizer plant supplies under international competitive bidding, subject to no price preference.
Deemed export benefits are made available for capital goods and spares supplied to fertilizer plants set up, expanded, revamped, retrofitted or modernised during the Ninth Plan if procured through international competitive bidding and provided that price preference is not available to the supplier; corresponding amendments to Appendix 14A, Appendix 14B (forms I A/I B) and deletion of S.No. 3(c)(iii) of Appendix 20C documents are prescribed to record the procurement and the price preference restriction.

Hand-Book of Procedures amendment: deletion of exemption provision following amendment to Export and Import Policy.
Amendment to the Hand-Book of Procedures (Vol.1) deletes paragraph 7.31, removing an exemption from procedures, pursuant to powers under paragraph 4.11 of the Export and Import Policy, 1997-2002, consequent to amendments in paragraph 4.14 of that Policy; the Director General of Foreign Trade issues the Public Notice stating the change is in the public interest.

Computerized export customs processing under EDI mandates electronic shipping bill filing with systemised let export and drawback procedures.
The EDI regime for exports at Air Cargo Complex, Sahar mandates registration of exporters/CHAs, submission of prescribed signed declarations at the Service Centre, and data entry that auto generates Shipping Bill numbers. Physical presentation of goods for examination remains required; a system recorded "Let Export" order must be given before printing shipping bills. Specific categories of shipments trigger supervisory on screen review. Drawback and DEEC claims are integrated into EDI with appendix based declarations and bank account requirements for electronic crediting, and airlines must file Export General Manifests electronically.

Standard Input-Output Norms amended, updating SION entries and corrections across chemicals, electronics, engineering, plastics and miscellaneous products.
The Public Notice amends the Standard Input Output Norms in the Handbook of Procedure, Vol.2 by prescribing substitutions, deletions and insertions of SION entries and correcting input quantities. Additions and corrections are set out in Annexures A-G, which add detailed product specific entries for chemicals, electronics, engineering, plastics, sports goods and miscellaneous products, specifying permitted import inputs, precise quantities and conditional notes governing eligibility.

MRP-based valuation applied to consumer cleaning and oral care products, determining assessable value after notified abatement.
Section 4A is used to impose MRP-based valuation for toothpastes, tooth powders and detergents, setting assessable value as the retail sale price (MRP) less notified abatement and, where multiple MRPs are declared, the highest price applies. Small scale exemption eligibility and value limits must be computed under section 4A and its notifications for clearances from the commencement date. Unutilised modvat credit for manufacturers lapses as at the commencement date, except credits attributable to inputs and inputs contained in finished goods physically in stock on that date.

Mandap keeper services: hotel venue rentals and personalised outdoor catering attract service tax when exclusive possession or service predominates.
The Finance Act defines mandap to include immovable property let for official, social or business functions and a mandap keeper is one who allows temporary exclusive occupation for consideration; hotels and restaurants letting halls or gardens for events are mandap keepers and taxable when exclusive temporary possession is given. Outdoor catering is taxable as a personalised service distinct from mere sale of food; in-restaurant sales, counter sales, or free/nominal delivery do not attract service tax. Renting premises for dance, drama or music programmes is a taxable social-function rental when charges are levied.

Invoice authentication under Rule 57G: officer availability extended to weekends and holidays to permit timely dispatch.
Certain excise invoices issued by registered second-stage dealers, registered importers (including from registered depots or consignment agent premises), and first- or second-stage dealers of imported goods require authentication by the proper officer. In response to industry representations about delays in obtaining such authentication, divisional offices will maintain staff on Saturdays, Sundays and holidays from 11 A.M. to 1 P.M. to authenticate invoices and facilitate timely dispatch.

Concessional excise duty for taxis: expedited refund processing requires registration within prescribed period and filing under Section 11B.
Concessional excise duty for taxis and ambulances is conditional on payment of higher duty at clearance, timely registration evidenced by a State Transport Authority certificate within the prescribed period, non-collection or refunding of the concession amount, and filing refund claims under Section 11B. Manufacturers may submit the registration certificate with the refund claim so long as the registration itself occurred within the prescribed period. The Board prescribes binding internal timelines for forwarding, verification, and decision-Division to Range within seven days, Range verification within two weeks, and prompt Assistant Commissioner decision-with weekly supervisory visits and monthly Commissioner monitoring.

Customs area designation permits open storage of metallic scrap and machinery under port trust custody with security requirements.
The Commissioner designates Sewri North as a Customs area for storage of metallic scrap, machinery packages, non-hazardous drums and similar cargoes suitable for open-area storage, effective until further orders, conditioned on the area remaining under complete Mumbai Port Trust control and on cargo being held under Mumbai Port Trust custody with adequate security. The Mumbai Port Trust must also provide adequate lighting and fire-fighting equipment within or near the area.

Expense deduction for non-professional Test cricketers permitted under income-tax provision after withdrawal of prior administrative formula.
Withdrawal of Instruction No. 1432 revokes the prior administrative prescription of fixed presumptive expense proportions for Test cricketers' receipts, and directs that non professional Test cricketers must claim allowable expenses in accordance with section 57(iii) of the Income tax Act, 1961 rather than rely on the earlier prescribed percentages.

Tamper proof seals compulsory: containers must use bottle seals to prevent tampering and costs recovered from exporters.
Containers must be sealed with tamper-proof bottle seals instead of punch seals, and the cost of such seals shall be recovered from exporters or their agents; recipients are requested to acknowledge receipt.

Freight consolidation and partial debonding permitted to simplify export procedures and material handling for electronic hardware exporters.
Permits freight consolidation for co located electronic hardware units; allows partial debonding of capital goods with Development Commissioner and Assistant Commissioner approvals; authorises re export, DTA clearance on payment of duty, or destruction of scrapped raw materials with requisite permissions; permits import of goods for reconditioning/upgradation under relevant notifications; accepts free replacement of defective exports subject to GR waiver; affirms self removal where only indigenous inputs are used with Commissioner's permission; and confirms DTA sales and committee based clearances for software and electronic hardware under existing EXIM policy.

Re-warehousing security requirements relaxed for export-oriented units; transit bond or insurance required, stricter guarantees for repeated defaults.
Imported goods transferred for re warehousing to inland stations require security for customs duty; the 5% Bank Guarantee is waived for consignments to 100% EOU, EHTP, STP and EPZ units provided a transit bond or insurance equivalent to duty is obtained and a re warehousing certificate is submitted within 30 days of despatch. Failure to produce the certificate within 30 days for more than three consecutive consignments will require supporting the bond with a 100% Bank Guarantee. These instructions modify Board Circular No. 29/95.

Relaxation for coastal vessels: exemptions from select customs provisions with operational controls and inspection powers.
Vessels exclusively carrying coastal goods are exempted from specified Customs Act provisions, but vessels changing status remain governed by Chapter XII. Coastal operations must use separate exclusive berths; the master must maintain an advice book; loading and unloading are confined to places notified under the Act. Customs officers retain powers to board, inspect, require documents and question vessel personnel, and should conduct selective random checks. Light dues may be collected by Customs until alternate arrangements are made, and implementation difficulties should be reported for issuance of standing orders and public notices.