Abatement on stenter closure: eligible processors receive abatement without prior duty payment or are reimbursed if paid.
Commissioners must first determine processor eligibility for abatement on stenter closure; if eligible, abatement should be granted without requiring prior payment of duty, and where duty was already paid the amount must be reimbursed in accordance with the Commissioner's order. Eligibility depends on continuous closure of the stenter for not less than seven days, prescribed sealing, and ordinarily a three day advance notice before closure (the notice requirement not applying where the stenter was already closed on 16.12.98).

Duty drawback on tea requires a certificate of non availment of MODVAT; otherwise exporters must seek brand rate or rebate.
Duty drawback on tea is conditional on mandatory production of a certificate of non availment of MODVAT; exporters unable to provide it should apply for Brand Rate or avail rebate. The drawback rate applies only to bulk tea and excludes packing materials. Drawback is not allowable where exporters are availing excise rebate on bulk tea or exporting under bond under the Central Excise Rules. Authorities must notify staff and trade and seek acknowledgement of the circular.

Income tax amendments widen sectoral incentives and recast reorganisations, withholding and return processing obligations.
The Finance Act, 1999 overhauls direct tax law by setting rates and TDS/TCS rules for 1999-2000, creating and revising targeted exemptions and incentives (tax holidays, export and infrastructure benefits, venture capital and commodity board exemptions, Gold Deposit Bonds), defining tax treatment of stock options, insurance compensation, buy backs, slump sales, demergers and amalgamations, and streamlining administration through return processing reform, appellate time limits, computerised TCS returns and revised compliance obligations.

B-8 bond security requirement clarified: qualifying exporters may furnish export bonds without security or surety under specified conditions.
The Board confirms that the instructions in Circular No. 284/118/96-CX (as modified) covering bonds under rule 13 and 14 apply to B-8 bonds required by Notification No. 47/94-CE(NT), and exporters who meet the category and conditions specified in that Circular may be allowed to furnish bonds, including B-8 bonds, without security or surety for movement of excisable goods for export.

Invalidation of receiver liability for service tax: refund claims to be filed under Section 11B and processed promptly.
The Supreme Court invalidated rules shifting service tax liability to receivers for Goods Transport Operators and Clearing & Forwarding Agents, creating refund entitlement. Refunds must be claimed under Section 11B by filing Prescribed Form "R" within six months of the judgment (27 July 1999). Valid claims filed in time are to be finalised within twelve weeks and refunded or credited to the Consumer Welfare Fund. No refunds arise for Goods Transport Operator services provided on or after the exemption effective date of 2 June 1998; Clearing & Forwarding services remain refundable where paid by receivers.

Replacement of defective exports and imports permitted with conditions, subject to GR Waiver and customs re-import/re-export rules.
Permits EOU/EPZ/STP units to make free replacement of exported goods found defective, damaged or unfit prior to physical re-import subject to GR Waiver, with such goods to be subsequently brought back; allows re-import where foreign buyers fail to take delivery. Allows receipt of free replacement for imported defective goods prior to re-export; if supplier does not insist on re-export, goods may be destroyed with customs permission or cleared into the DTA on payment of full customs duty.

Rebate calculation: only working chambers count for excise duty rebate; closed chambers with abatement are excluded.
Clarifies that in the rebate formula the variable n means only working chambers for which excise duty was paid; chambers closed and sealed which entitle processors to abatement must be excluded from n. Closures supervised by the Department will be recognized, and closures under seven days, on which abatement is inadmissible, may be treated as working chambers.

Selection for scrutiny under Section 143(3) suspended in salary wards; focus shifted to refunds and employer TDS checks.
Selection for assessment under Section 143(3) is suspended in salary wards/circles/special ranges in Delhi, Mumbai, Calcutta and Chennai for the current year to concentrate on pending refund disposal and scrutiny of employer TDS returns, with exceptions for search and seizure, surveys under section 133A, reassessments under section 147, set-aside or court-mandated cases, and matters flagged by vigilance or investigative agencies; Central charges remain unaffected and each return there continues to be selected for Section 143(3) assessment.

Deemed export benefits extended for OECF financed power projects pending assistance, subject to reimbursement if funding fails.
Deemed export benefits under paragraph 10.3 of the Exim Policy, 1997-2002 are made available for supplies to Faridabad Gas Based Power Station (NTPC), Simhadri Thermal Power Project (II) (NTPC) and Bakreshwar Thermal Power Project (III) (WBPDCL), projects financed by OECF, pending availability of further OECF assistance; if subsequent OECF assistance does not materialize, the respective project authority must fully reimburse all deemed export benefits to the Government of India.

Bank guarantee requirement reduced for bonded diamond warehouses; specified exporters may use a legal undertaking in lieu of security.
Security for bonded warehouses handling diamonds and coloured gemstones is amended: specified categories of exporters may submit a Legal undertaking (LUT) in lieu of bank guarantee or cash deposit, while other exporters are required to provide security equal to 25% of the duty liability instead of the earlier 50%, modifying the prior circular.

Surrender of special import licence required for valuewise shortfall; applies to licences issued before 1 April 1997 pending regularisation.
Surrender of Special Import Licence is required to regularise valuewise shortfall in export obligation by surrendering SILs equivalent to four times the CIF value of imports on a pro rata basis, and this surrender requirement applies to licences issued prior to 1 April 1997 where cases are still pending for regularisation.

EPCG self declaration option permits licence applications subject to nexus review and Customs duty plus interest liability.
Paragraph 6.8B allows applicants to apply for EPCG licences on the basis of self declaration, subject to nexus fixation by the Headquarters EPCG Committee; applicants must undertake to pay Customs duty plus 24% interest if capital goods are disallowed. Public Notice amendments permit extension of export obligation periods where Bank Guarantees exceed the requested period by six months and provide that existing Bank Guarantees covering Customs duty plus 24% interest need not be replaced when proved to the licensing or Customs authorities.

Export quota allocation: sugar reallocated from free sale quota for preferential export to EEC under amended regulation.
Authorization to place quantities of raw and white sugar from the 1998-99 free sale quota into the 1999-2000 preferential export quotas for the EEC, reallocating domestic free-sale supply to preferential exports; and a corrective amendment replacing the cited EEC regulation reference '2782/6' with '2782/76', issued with the approval of the Director General of Foreign Trade.

Re-export of EPCG-imported capital goods requires prior payment of full customs duty on merits; drawback claim may follow.
Re-export of capital goods imported under the EPCG Scheme at concessional or nil duty is not permitted without first paying full customs duty on merits; after payment the importer may claim drawback under the statutory drawback framework. Recovery proceedings must be initiated where re-export occurred without duty payment, and public notice and standing orders should be issued to guide trade and staff.

Service tax liability shift for clearing and forwarding agents requires agents to pay tax instead of the engaging principal.
The Service Tax regime was amended to transfer payment responsibility for taxable services provided by clearing and forwarding agents from the principal or client to the agents themselves, effective 1 September 1999. Such agents are liable under Section 68(1) and must follow existing registration, return filing, assessment and recordkeeping requirements; taxable value remains the gross remuneration or commission paid to the agent.

Brand rate of drawback extended to DEPB exports despite inadvertent negative declarations, subject to standard verification and fixation.
Where DEPB-cum-Drawback shipping bills contain inconsistent exporter declarations regarding claiming drawback, the inadvertent statement that drawback will not be claimed will not bar entitlement to the Brand Rate of Drawback. Such cases are eligible for normal brand rate fixation and reimbursement of additional customs duty and excise duty on inputs used in exports of non exciseable products, subject to receipt of verification reports from field formations.

Certification of Handicrafts: Export Promotion Council or Development Commissioner certificates accepted for drawback processing.
Because handicrafts are unconditionally exempted from Central Excise duty, exporters under the Duty Drawback Scheme need not produce a certificate of non availment of MODVAT; exports must be supported by a certificate that the goods are handicrafts, and the Board will accept such certificates issued by the Development Commissioner, Handicrafts or by the Export Promotion Council for Handicrafts endorsed on the Shipping Bill.

Modvat credit admissibility for computer-printed invoice serial numbers upheld; show-cause notices should not be issued on that ground.
The Board instructs that modvat credit must not be denied solely because computer-generated invoices lack pre-printed serial numbers; running serial numbers printed by the computer at the time of invoice generation are acceptable and do not breach rules. Consequently, show-cause notices should not be issued on this ground, and existing notices issued for this reason should be disposed of in line with these instructions.

Timely remedial action for revenue audit objections required, with complete proforma reports and appropriate statutory reassessment where needed.
Where Revenue Audit or C&AG draft para objections are accepted by Commissioners, remedial action must be completed immediately and proforma reports in Part 'A' and 'B' must be fully and correctly completed and sent to the Board within the prescribed timeline, with dates of receipt and dispatch recorded; action should be taken under section 147 or 263 where detailed examination is required and section 154 used only for mistakes apparent from record.

Duty drawback applicability: woollen garments limited to specified categories; others eligible only for brand rate.
Sub Serial No. 62.01 (All Industry Rate) does not apply to woollen readymade garments not specifically listed; Sub Serial No. 62.09 applies only to woollen suits, trousers, blazers and jackets. Woollen garments outside those specified categories are not covered by any Sub Serial numbers in the Drawback Table and exporters can claim only the Brand rate.