Correction to tax circular: substitution of a referenced figure in prior circular clarifies the operative provision's reference.
Correction to Circular No. 706: in paragraph 3 of the earlier income-tax circular, the originally published numerical reference is to be substituted by an alternative numerical reference; the amendment is administrative, issued by the Central Board of Direct Taxes to clarify the internal cross-reference within the prior circular.

Classification of power driven pump sets as pumps secures tariff heading eligibility and exemption for whole units.
The prime mover may be treated as an integral part of a pump set and, under the composite-machine principle, pump sets whose principal function is pumping are classifiable as pumps; where such power driven pump sets are primarily meant for handling water, the entire pump set is eligible for the tariff concession and exemption applicable to pumps.

Registration fee for section twenty-five companies remains fixed on capital increases; a single flat fee applies.
The Department of Company Affairs advised that where a licence under section 25 was issued and the registration fee was fixed irrespective of authorised capital, the same fixed registration fee applies when that company increases its authorised capital, so the flat fee payable at incorporation governs fee liability on capital increase.

Assessable value inclusion: non-transport surcharges and RPO operating costs must be added to taxable petroleum value.
The circular clarifies that amounts collected by oil companies that constitute consideration for sale must be included in the assessable value when excise duty is paid at ex-storage point: State Surcharge and RPO Surcharge are includible; RPO and Air Field charges must be apportioned so transportation costs may be excluded subject to verification while operating cost/return elements are includible; and railway siding/shunting charges incurred within warehouse premises before clearance are includible.

Assessable value inclusion of surcharges and service charges affects excise duty liability on petroleum product sales.
Determination of excise assessable value for petroleum products sold at ex-storage points: amounts collected in addition to ex-storage selling price may form part of the consideration and thus be included in the assessable value under Section 4 principles; specific heads considered include State Surcharge, RPO Charge (excluding verifiable transportation component), RPO Surcharge, Railway siding/shunting charges, and Air Field Charges (excluding verifiable transportation component).

Classification of embossed holograms: self adhesive ones classed as plastic articles; non adhesive embossed holograms treated as printed matter.
Embossed holograms made as self adhesive plates, films, foils, tape strips or other flat plastic shapes are classifiable as self adhesive plastic articles under the Customs Tariff because they constitute plastic articles printed or formed with motifs not merely incidental to primary use. Embossed plastic holograms that are not self adhesive are classifiable under the chapter covering printed matter, having regard to the manufacturing process, adhesive property and end use.

Duty Exemption Scheme amendments expand permitted ICDs and airports and impose actual user non transferability conditions on certain substances.
Amendments expand permissible points of import and export under specified Duty Exemption Scheme notifications to include additional inland container depots and an airport, specify ports/airports/ICDs for special imprest licences and job work provisions, permit import of hangers for re export with ready made garments, and impose actual user and non transferability conditions on Ephedrine and Pseudo ephedrine aligning them with controls on Acetic Anhydride.

TDS exemption on interest from government securities for exempt religious institutions; payments can be made without tax deduction.
The revenue board directed that interest on securities of the Central and State Governments payable to Ramakrishna Math and Ramakrishna Mission, being institutions exempt under clause (iv) of section 10(23C), may be paid without deduction of income-tax at source, and that this administrative direction applies from the current financial year.

Simplified customs examination for perishable exports: routine openings barred, inspections only on intelligence; certificates must be verified.
Export consignments of perishable goods at airports and air cargo complexes are no longer to be routinely opened or physically examined; inspections are limited to cases where specific intelligence or information exists, and any opening based on such intelligence must be reported to the Deputy Commissioner or Additional Commissioner. Customs officers may still verify exporter declarations and must check required phytosanitary, veterinary or equivalent certificates before clearance.

Component for repair: notification covers parts imported by ship repair units for repairing ocean going vessels, subject to conditions.
Notification No. 211/83 Cus explicitly qualifies goods as components for repair of an ocean going vessel, so it covers all parts imported for repair by a ship repair unit, provided the other conditions of the notification are fulfilled; this is distinct from prior tribunal authority that construed "component" absent an end use qualification.

Scrutiny of political party returns: assessments may be completed after scrutiny irrespective of voluntary filing or notice response.
The Board directed that all assessments of political parties up to the specified assessment year may be subjected to and completed after scrutiny of returns, irrespective of whether returns were filed voluntarily or in response to a notice under the assessment provisions, and ordered that this directive be circulated to all concerned officials.

Interest on warehoused goods to be calculated and collected at clearance; specified classes exempt, prior warehoused goods covered.
Interest under Section 61 is to be calculated with reference to duty payable at time of clearance; specified classes of warehoused goods are exempt from interest at clearance and that exemption extends to goods warehoused before the amendment if not cleared for home consumption; capital goods of 100% EOUs debonded before the amendment remain under the old regime. Field formations must desist from issuing enforceable interest demands at warehousing extension stage; quantification and collection of interest occur at clearance, and existing demand notices are to be processed under waiver guidelines.

Filing of TDS returns: centralised head office filing prevents duplicate demands; jurisdictional AO may enforce compliance.
Filing of returns under section 206 is to be centralised: where a head office or branch is already filing the prescribed TDS return, no other Assessing Officer shall require the assessee to file the same return. If the return is not being filed, the Assessing Officer having jurisdiction under rule 36A may enforce compliance. This procedure is extended to all other TDS returns filed under rule 37 as required under section 206, preventing duplicate filing obligations while preserving enforcement authority for non filing.

Consolidated RG 23A Part II maintenance permitted, subject to monthly input/output reporting and credit reversal exception.
Consolidated maintenance of RG 23A Part II is permitted when common inputs are used for both dutiable and exempt products, provided the assessee submits a monthly statement detailing inputs, quantities of exempt and dutiable final products, and credit availment/reversal particulars. The Board permits consolidation generally but excepts situations where Modvat credit reversal is required prior to clearance under the VABAL notification and the NALCO principles, in which case prior reversal controls treatment.

Cash refund of Modvat credit: expedite sanction of unutilised credit claims to protect export competitiveness.
The Board treats cash refund of unutilised Modvat credit as an export incentive and directs that refund claims under the applicable provision be decided expeditiously where manufacturers cannot utilise duty credit against goods exported, so that accumulated credit is released and export competitiveness preserved.

Modvat credit entitlement upheld where input description and Chapter number are correct despite minor classification variations.
Under rule 57G, Modvat credit should be allowed where the prescribed declaration correctly states the description of inputs and the Chapter number; minor variations in six digit classification or changes in chapter heading due to evolving classification practice should not justify denial of credit so long as such variations do not affect the rate of duty.

Transit sale invoice suffices: manufacturer's Rule 52A duplicate covers transport and Modvat credit; dealers need not register.
Transit sale movement may proceed directly on the manufacturer's duplicate invoice under rule 52A, which serves as the transport cover and valid duty-paying document for availment of Modvat credit; consequently, dealers participating in such transit sales need not obtain registration and no separate invoice under the general invoice provisions is required.

Cash recovery of money credit suspended pending Board review; field formations instructed not to enforce precipitative demands.
The Board advises that claims for cash recovery of money credit under Notification No. 45/89-CE(NT) are under examination and directs Commissioners of Central Excise to instruct field formations not to take precipitative action to enforce such demands pending the Board's decision.

Service tax on brokerage: charging at both brokers is justified as tax mirrors commission charged.
Where two brokers provide services in a single securities transaction, service tax attaches to each broker separately because the tax is a percentage of the aggregate commission or brokerage charged by each broker; consequently charging service tax at both ends reflects distinct brokerage charges and is not double taxation.

Valuation for notional interest on security deposits may be added to assessable value when a pecuniary advantage is shown.
Notional interest on security deposits or advances is includible in assessable value only if there is evidence that the deposit conferred a direct or indirect pecuniary advantage to the manufacturer; where identical prices are charged or interest is credited to the buyer, notional interest should not be added. The assessing officer, with Chief Commissioner approval, must use valuation procedures and cost-accounting/banking principles to quantify any benefit, and an earlier contrary circular is withdrawn.