Payment by cheque deemed made when handed to bankers; no interest or penalty if deposited before due date and honoured.
Where a taxpayer deposits service tax by cheque into an authorized bank before the due date and the cheque is later honoured, the payment is deemed made on the date the cheque was handed to the Government's bankers, and the Department need not recover interest or impose penalty solely because the bank credited the account after the due date; however, if the cheque is dishonoured or clearance is abnormally delayed due to the assessee's lapse, penal action may be taken.

Deemed payment by cheque: deposited before due date and honoured, no interest or penalty recovery thereafter.
Where a service tax cheque is deposited in an authorized bank before the due date and is subsequently honoured, the payment is deemed to have been made on the date the cheque was handed to the Government's bankers; in such cases the department should not recover interest or impose penalty merely because the bank credited the amount after the due date, though dishonour or abnormal delay attributable to the assessee permits penal action.

Certification Trade Mark protection requires a Tea Board Certificate of Origin before using "Darjeeling" on exported tea packaging.
Exporters using the name "Darjeeling" must possess a Tea Board Exporter's Licence, a Trade Mark User Licence authorising use of the Darjeeling certification mark, and a Certificate of Origin issued by the Tea Board; each consignment labelled "Darjeeling" must be supported by the Certificate of Origin and related Tea Board documents, and Customs shall prevent export or packaging bearing the name without such documentation.

Line of credit export finance: prescribed approval, LC mechanics, inspection and reimbursement procedures under foreign exchange directions.
Reserve Bank of India directs that Exim Bank's line of credit to the Export Import Bank of Thailand may finance exports from India subject to prior Exim Bank approval, contracts in U.S. dollars meeting a minimum size, financing up to a specified percentage of f.o.b./c.&f./c.i.f. contract value, buyer advance payment and balance under an irrevocable letter of credit advised through designated negotiating bank offices in India, required pre shipment inspection certificates, reimbursement procedures for negotiating banks in dollars, allocation of bank charges between seller and buyer, procedural GR/SDF declarations, and limited agency commission subject to prior approval.

Line of credit terms: majority export financing via letters of credit, importer must remit balance upfront and contracts need approval.
The line of credit permits imports of Indian capital goods (including contracted spare parts), consumer durables and consultancy services into Seychelles, excluding third country imports. Contracts require bilateral approval and routing to the Ministry of Finance. Disbursement is by letters of credit opened in Seychelles, with the importer to pay 10% of the f.o.b. value and the State Bank of India to reimburse 90% upon certification by the negotiating bank; LCs must include a prescribed reimbursement clause. Specific signing, L/C establishment and drawdown deadlines apply; agency commission is prohibited and non compliance is subject to FEMA penalties.

Compulsory dematerialised trading postponed for non connected issuers; failure to connect moves shares to trade for trade settlement.
Issuers designated for compulsory dematerialised trading that did not sign agreements or establish connectivity with both depositories received a one month extension to complete such arrangements; failure to do so by the extended effective date will result in their shares being traded only on the exchanges' trade for trade settlement window. Certain scrips listed in annexures A and B have their compulsory dematerialisation implementation postponed to the next scheduled effective date, and three named banks are excluded from the compulsory list.

Mode of payment for excise duty: fortnightly liabilities may be discharged by consignment, daily, or part-payment methods.
Assessees may discharge excise duty fortnightly or continue payment on consignment, daily, or by part-payment within a fortnight; the duty for the first fortnight must be discharged by the prescribed date in that month and the second fortnight by the prescribed date in the succeeding month.

DEPB scrip debit facility enables bonded warehouse clearances via Telegraphic Release Advice, subject to commissioner jurisdiction.
Permits imports from customs bonded warehouses to be cleared by debiting DEPB scrips through a Telegraphic Release Advice (TRA) where the DEPB scrip and warehouse fall within the jurisdiction of the same Commissioner or a Commissioner with TRA authority. The DEPB scrip may be registered at the port of registration or another TRA-issuing station. The TRA must detail descriptions, value, quantity, DEPB serial and entitlement, and specify customs checks including sampling; receiving Commissioners must forward import details to the issuing station for entry in the relevant register.

Consolidation of LCL cargo: procedure broadened to include agents and leased containers, permitting local stuffing under shipping bills.
Consolidation of LCL cargo at gateway ports now permits "shipping lines/their agents/MTOs/NVOCCs/freight forwarders/consolidators" to undertake LCL consolidation; custodians may use owned or leased containers to carry LCL cargo from inland ICDs to gateway hubs. Locally cleared LCL cargo may be stuffed into containers re-stuffed with inland cargo after customs examination and let export order, move under shipping bills from shed to LCL hub, and be recorded by custodians with substituted fields identifying local CFS/shed number and the designation "Local cargo."

Classification of car seat covers as accessories confirms accessory tariff treatment; distinguish carefully from vehicle parts.
Car seat covers, whether leather or textile, are classifiable as accessories to car seats and subject to accessory tariff treatment, the revenue authority accepted tribunal precedent endorsing that classification but cautioned that the distinction between parts and accessories is narrow and requires careful scrutiny to prevent parts being cleared as accessories.

Quantitative ceiling on sugar exports set for licensing year and allocated to APEDA for issuance of export registration certificates.
Pursuant to Paragraph 4.11 of the Export & Import Policy 1997-2002 and referencing the ITC(HS) classification for sugar, the Director General of Foreign Trade fixes a quantitative ceiling on sugar exports for the licensing year 2000-2001 and places the allocated quantity at the disposal of APEDA for issuance of Registration-cum-allocation Certificates (RCACs) to exporters.

EEFC account restrictions require reduction of retained foreign receipts, limit account types, and bar credit facilities secured by balances.
Authorised dealers must ensure EEFC balances are reduced to fifty percent of amounts held as of 11 August 2000, with excess converted into rupees or sold forward and compliance reported to the Reserve Bank. From 14 August 2000 retention ceilings for crediting eligible inward remittances to EEFC accounts are lowered for export oriented/specialised units and for other residents. EEFC accounts are limited to current or savings form for individuals and current accounts for others; term deposits must convert at maturity. No new fund or non fund credit may be granted against EEFC balances, existing facilities to run to maturity without extensions.

Applicability amendment: SEBI circular provisions now apply from August seventh to draft offer document filings.
The circular amends applicability of SMDRP/POLICY/CIR-35/2000 so its provisions shall apply to issues with draft offer documents filed with SEBI on or after August 07, 2000, replacing the earlier applicability date of June 15, 2000; it is addressed to the presidents and senior officers of all stock exchanges as an administrative notice.

Concessional duty eligibility denied for BOPP and Hazy films as plain film; customs to adjust assessments accordingly.
Concessional duty under Notification No. 25/99-Cus. for plain plastic films used in electronic capacitor manufacture does not extend to BOPP and Hazy PP films because plain is defined as "not further worked"; BOPP (oriented) and Hazy (surface treated) films are further worked, differ in physical properties and market identity, and therefore do not qualify. Customs Houses must finalise provisional assessments, and where final assessments previously granted the concession, issue demands for past periods and report action taken.

Public Mobile Radio Trunking Services not taxable as telephone-connection services; clarifies exclusion and centralises interpretation authority.
PMRTS provide wireless connectivity among subscribers via radio terminals or trunking handsets without using telephone lines or instruments and without simultaneous two way voice communication; therefore PMRTS are not services "in relation to a telephone connection" and do not fall within that taxable scope. All interpretive or policy questions on service tax must be referred to the Board for examination and clarification; field offices must not issue independent clarifications.

Line of credit facility enables full f.o.b. financing for eligible exports to Vietnam subject to specified approvals and procedures.
A government-to-government line of credit of six hundred million rupees to Vietnam permits imports of specified capital goods, consumer durables and consultancy services from India. Each export contract requires approval by both Governments and the Ministry of Finance; Letters of Credit must be opened by the Bank of Foreign Trade of Vietnam, advised to the State Bank of India, and finance the full f.o.b. value with a prescribed reimbursement clause. Contracts, L/Cs and drawdowns must meet specified deadlines, shipments must be declared on GR/SDF/SOFTEX forms with required superscription and certification, import content must be low, and agency commissions are disallowed. Directions are issued under FEMA.

Tax reform reshapes direct tax rates, incentives and compliance, introducing venture capital pass through and targeted infrastructure roll over.
The Act revises the direct tax framework by specifying income tax and TDS rate structures with surcharges, rationalising TDS thresholds, creating targeted exemptions and incentives (notably a venture capital pass through regime with reporting obligations, expanded infrastructure definitions, and designated bonds for capital gains roll over), substituting and time limiting export tax holidays, restructuring MAT to apply uniformly to companies with book profits, and clarifying demerger, amalgamation, cost inflation index and slump sale valuations, alongside procedural reforms to advance rulings, appeals and identification requirements.

Limitation on excise recovery: amended extended period applies prospectively and cannot revive already time barred demands.
The amendment extended the limitation for issuing show cause notices for recovery of unpaid or short levied excise duty from six months to one year. It applies prospectively: if the original six month limitation expired before the amendment's commencement the extended period cannot be used; if the six month period expires on or after commencement, notices may be issued within the one year period from the relevant date. Field formations must apply the amendment only to cases where limitation runs on or after commencement and not revive already time barred demands.

Account verification requirement: Depository participants must authenticate identity and address before opening beneficiary accounts, or face regulatory action.
Depository participants must authenticate applicants' identity and photograph by an existing account holder, the applicant's bank, or by verification against originals of a passport, voter identity card, driving licence, or PAN card with photograph, and must obtain verified proof of address with originals certified by an authorised official; participants must verify existing accounts, report failures to produce originals, and may face account freezing or suspension of registration for non-compliance.

Listing procedure: exchanges must grant in principle and final approvals to expedite commencement of trading per revised timelines.
Issuers must file draft offer documents with SEBI and simultaneously with all proposed listing exchanges. Exchanges must accept or decline in principle approval within fifteen days, and the lead manager must furnish all such approvals to SEBI; without approvals from all exchanges the issue cannot proceed. In principle approvals must be disclosed in the offer document. After finalising the basis of allotment, despatch of certificates/refunds/demat credit and submission of allotment and listing documents must be completed within two working days, the regional exchange must give final approval within three working days, other exchanges shall grant automatic approval thereafter, and the lead manager must ensure listing and commencement of trading at all exchanges within seven working days.