Export obligation compliance dictates duty liability on debonding; depreciation applies when capital goods were used for export production.
Cases on de-bonding hold that duty, confiscation and penalty for non-fulfilment of export obligations require a prior definite finding and proper adjudication; procedural lapses alone do not justify demands when statutory approvals for changed use exist. On debonding, capital goods manifestly used in export production or where obligations are partially fulfilled attract depreciation benefit and duty assessed on depreciated value, whereas breach of post-import conditions can disallow notification benefits and render goods confiscable, with remand appropriate where records lack findings.

Deemed exports equivalence: including supplies to EOUs in export calculations affects entitlement to DTA sales under Exim Policy.
Whether supplies treated as deemed exports to 100% EOUs for use as raw materials must be counted as exports when computing entitlement to DTA sales under the Exim Policy. Tribunal authorities, following Amitex Silk Mills, have treated deemed exports to EOUs as export-equivalent for determining DTA sale entitlement, aligning such clearances with the Development Commissioner's permission.

Duty on exit from EOU scheme: stock items attract duty; in-process goods not leviable; import value governs valuation.
Duty at exit from the EOU scheme is payable on imported and indigenous capital goods, raw materials, components, consumables, spares and finished goods in stock; the Foreign Trade Policy does not authorize duty on goods in process, so such demands are not sustainable. For de-bonding, duty may be computed on the value at time of import using the then-adopted dollar rate while applying the rate of duties in force at clearance.

Customs duty exemption allows import of Tamiflu for a government buffer stock to supplement domestic supply.
Customs duty exemption dated 21.05.2009 authorises duty-free import of one million Tamiflu 75 mg capsules by M/s Roche India Ltd on behalf of the Government; Roche will maintain the imported Oseltamivir buffer stock for supply exclusively to the Government, on recommendation of the Department of Health and Family Welfare, to supplement domestic production for H1N1 treatment.

Refund of unutilized input service credit: exporters may claim cash refunds when notification conditions and documentary proof are met.
Refunds of unutilized Cenvat credit on input services are allowable under substituted Rule 5 and Notification No. 5/2006 for export transactions, including claims for periods prior to formal notification issuance, provided exporters satisfy the notification's conditions and documentary requirements; credits on mobile, C&F charges and foreign commission agent services have been held admissible, while services that are output services of the same supplier (e.g., certain business auxiliary services to a principal) are not allowable as inputs.

Special Economic Zones policy promotes export-led investment and local infrastructure to generate employment and export growth.
Special Economic Zones under the SEZ Act 2005 and SEZ Rules 2006 create a statutory regime to promote export-led industrialisation by providing fiscal incentives, quality infrastructure and single-window clearances to attract domestic and foreign investment. The scheme targets increased economic activity, exports, investment, employment and infrastructure development, requires developers to provide local infrastructure, and produces direct and indirect employment and spillover demand for ancillary industries across IT/ITES, multi-product and sector-specific SEZs.

Service tax exemption for services consumed within SEZs now unconditional; refund route applies only when consumed outside SEZ.
Notification No.15/2009 amends Notification No.9/2009 by granting unconditional exemption from service tax for specified taxable services consumed within the SEZ, while preserving a refund route where services are consumed partially or wholly outside the SEZ. Refund claims must be supported by the Approval Committee-approved list of services and documents evidencing payment of service tax; authorities may verify end use. Existing pre audit procedures apply to large claims, an interim ad hoc refund is to be sanctioned promptly for complete claims, and finalisation deadlines of thirty days (maximum forty five days) apply.

Export of service exemption: receipt in foreign currency not required where recipient has no Indian establishment.
Services provided in relation to the business of a recipient located outside India qualify as export of service even if payment is received in Indian currency through an intermediary, so long as the offshore recipient has no commercial or industrial establishment or office in India; the proviso and its conditions apply only where the service recipient maintains a local establishment, in which case payment from that local office may affect the export character.

Tariff valuation of imports fixed for edible oils, brass scrap and poppy seeds as reference values for customs assessment.
The Department of Revenue, via the Central Board of Excise and Customs, has fixed tariff values in US dollars per metric tonne for specified imported commodities for customs valuation: listed edible oils (with values unchanged), Brass scrap (all grades), and Poppy seeds. These tariff values serve as the prescribed reference import values for customs assessment and import taxation.

Services definition under SEZ clarifies tradable services scope, WTO coverage, prescription and foreign exchange requirement.
The term services under the SEZ regime requires that services be tradable, fall within GATS coverage or be prescribed by the Central Government, and earn foreign exchange; rule level guidance then provides an illustrative catalogue including information enabled services, engineering and design, human resources, financial and transport services, offshore banking, professional and business services, health, education, construction, distribution, tourism, and related auxiliary services.

Export oriented unit setup prerequisites ensure compliance with fiscal, environmental and registration requirements for lawful operations.
Establishing an Export Oriented Unit requires project planning covering ownership and foreign participation, product and technology choices, feasibility and financing for capital goods and construction, and detailed production design addressing inputs, capacity, by products and subcontracting. Compliance obligations include company registration, foreign exchange banking, RCMC, sales tax/SSI registration, factory registration and mandatory state clearances (pollution, building approval). Operational compliance extends to customs and excise duties, state levies, power supply arrangements including captive plants, and effluent/waste treatment measures.

EOU/SEZ approval mechanism lists application forms, approval criteria and operational guidelines for units and developers.
The approval framework for setting up Export Oriented Units and Special Economic Zone units requires an application and compliance with criteria for automatic approval, sector specific requirements, prescribed formats for letter of permission and legal agreements, and oversight by a Combined Board of Approvals with monitoring guidelines, DTA sale rules, and CST reimbursement procedures.

Export oriented unit approvals: prescribed application, licence equivalent Letter of Permission enabling procurement and conditions on DTA sales.
Procedures require submission of the prescribed application to the competent authority; non licence proposals are approved by the local approval committee within a short period, while licence dependent proposals require clearance by the approval board and central industrial policy department within a longer period. The Letter of Permission/Intent constitutes a licence for procurement and other statutory purposes and must specify activity, capacity, projected initial export, Net Foreign Exchange Earnings and any limitations on domestic tariff area sales, with such additional conditions as necessary.

Positive net foreign exchange requirement in SEZ units mandates bond agreement and annual reporting to the Development Commissioner.
SEZ units must obtain Development Commissioner approval by submitting the prescribed project proposal; the DC issues Letters of Permission/Intent and monitors performance via an Approval Committee with Zone Customs. Units must meet a positive net foreign exchange earning obligation, execute a Bond cum Legal Agreement with the DC and Deputy Commissioner of Customs, and provide annual reports in the prescribed format. Incentives include customs and excise exemptions for imports and domestic procurement, deemed export treatment for DTA supplies, in house customs clearance, EEFC retention, liberal repatriation and FDI policies, and subcontracting freedoms.

Fiscal and monetary stimulus boost domestic demand to revive growth while prioritising credit flow and infrastructure investment.
The commentary emphasises fiscal and monetary measures to revive demand: fiscal stimulus packages, duty and excise cuts, higher public spending and resource allocation to employment and infrastructure programmes, coupled with RBI easing through CRR and rate reductions to inject liquidity and ensure credit flow to industry, housing and infrastructure while monitoring inflation and fiscal deficit implications.

High dismissal rate of revenue appeals signals scrutiny of departmental appeal practices and calls for enquiry.
A sustained pattern of dismissal of departmental appeals before the Customs, Excise and Service Tax Appellate Tribunal, South Zonal Bench, Bangalore shows recurring high rates of unsuccessful revenue appeals, attributed to low-quality decisions and unfiltered filings by Commissioners. The commentary assigns responsibility to Commissioners and Chief Commissioners for initiating and failing to curb frivolous appeals, criticises the supervisory review function at the Chief Commissioner level, and calls for an enquiry and institutional review to prevent wasteful tribunal admissions and conserve administrative resources.

Prior RBI permission for foreign branch offices limits permitted activities and sets funding and profit repatriation rules.
Foreign companies must obtain prior permission from the Reserve Bank of India via Form FNC-1 to open branch offices in India; branches may carry out only RBI approved activities, cannot accept deposits, must fund operations from inbound funds or local income, are not separate legal entities, and may remit profits net of taxes subject to RBI guidelines. Permitted activities include trade, consultancy, research tied to the parent, technical and financial collaboration, representation and agency roles, IT and software development, technical support, and operations by foreign airlines and shipping companies; manufacturing must be subcontracted to Indian manufacturers.

Foreign investment entry options: incorporation, liaison/project/branch offices and SEZ route enable structured market presence under regulatory conditions.
Foreign investment entry options include incorporation as an Indian company (joint venture or wholly owned subsidiary) subject to FDI sectoral caps, or establishment of liaison, project or branch offices with specified permissible activities. Liaison offices are restricted to non commercial liaison functions; project offices may execute defined projects and remit project surplus on completion; branch offices may undertake prescribed commercial and service activities but not independent manufacturing. SEZ branch units may operate restricted activities within SEZs. NRI investments in firms/proprietorships are allowed on a non repatriation basis with specified funding sources and sectoral exclusions; other non residents require regulatory permission.

Customs cooperation: pilot customs data exchange to enhance information sharing and expedite legitimate trade clearance.
Customs cooperation focuses on enhancing cross-border information sharing and operational coordination to expedite legitimate trade clearance while ensuring accurate duty assessment. The administrations agreed to implement the Agreement on Cooperation and Mutual Assistance concluded in February 2006 and to launch a pilot project on Customs Data Exchange to test practical data-sharing arrangements and technical interoperability between the administrations.

Captive consumption valuation: transfers to sister units require special valuation methods, often relying on proviso or residuary rules.
Transfers of goods to a sister unit are not to be treated as captive consumption and Rule 8 valuation is not automatically applicable; valuation for inter-unit transfers must follow the proviso to the general valuation rule. Where no independent sale exists and cost of production cannot be determined, the residuary valuation rule should be applied and it is reasonable to adopt the invoice value used for taking Cenvat credit, with appropriate depreciation allowed for capital goods.