Tariff value notification updates import valuation for edible oils, brass scrap and poppy seeds under customs rules.
Notification fixes tariff values in US dollars per metric tonne for specified imported goods, listing edible oils (various palm oil and soyabean oil types), brass scrap (all grades) and poppy seeds; most edible oil entries remain unchanged while brass scrap and poppy seeds have specified rates. The June 30, 2008 directive supplies the customs valuation schedule to be applied for import clearance and duty assessment for the listed tariff headings.

Bilateral Investment Promotion Agreement establishes investment protection and facilitation, supported by credit lines and banking ties to boost power and border trade.
India and Myanmar concluded four economic cooperation instruments: a Bilateral Investment Promotion Agreement establishing investment protection, dispute resolution, national treatment and facilitation of managerial and technical personnel; two credit line financing agreements to support transmission infrastructure and a power sector manufacturing facility; and a bilateral banking arrangement to provide correspondent banking for implementation and expansion of border trade, alongside expressed mutual interest in collaborative hydropower development.

Service tax exemption limitation: circular tying exemption to services rendered within SEZs is challenged as contrary to SEZ law.
Availability of service tax exemption and Cenvat credit for SEZ-related transactions is contested; petitioners challenge a circular conditioning exemption on services being rendered from within SEZs and denying input credit to manufacturers supplying SEZ developers, asserting the SEZ Act's overriding provision makes exemptions depend on services being used for authorised SEZ operations regardless of the service provider's location, and that DTA sales to SEZ developers qualify as exports eligible for input credit or refund.

Intellectual property cooperation agreement to be signed, strengthening bilateral IPR collaboration and trade-linked technology transfer.
A Bilateral Agreement on Intellectual Property Rights (IPR) Cooperation between the intellectual property offices of India and Singapore is imminent, creating a cooperative framework for IPR matters. The agreement is linked to broader trade and investment relations, and is contextualised by progress on the ASEAN-India FTA negotiations, with trade growth, principal export/import categories, and key sectors for foreign direct investment and technology transfer noted as the economic backdrop for cooperation.

Service tax on advertising: agency commissions charged to clients are taxable; broadcaster discounts to agencies are not taxable.
Service tax applies to amounts charged by an advertising agency to its client for agency services, including agency commission billed to the client, because the advertiser is the agency's client. Discounts or rebates given by print or broadcasting media directly to the advertising agency do not constitute receipts from the client and are not includible in the agency's gross taxable value for service tax purposes.

Tariff value notification establishes customs valuation for specified edible oils, brass scrap and poppy seeds.
Notification sets tariff values for specified goods to be applied for customs import valuation, listing per metric tonne values for edible oils (crude palm oil, RBD palm oil, palmolein variants, crude soybean oil) and separate notified values for brass scrap (all grades) and poppy seeds as the operative benchmarks for import clearance.

Tax revenue collection shows year on year growth in customs, excise and service tax monthly receipts.
Provisional month wise indirect tax receipts show comparative monthly and year to date figures for Customs and Central Excise (May 2008) and Service Tax (April 2008) with percentage growth rates; Customs and Excise are itemised and aggregated, excise figures exclude cess not administered by the Department of Revenue, and Service Tax publishes a year on year monthly increase.

Foreign investment caps and entry routes clarified; automatic admission or prior government approval required with sectoral conditions.
The policy sets a sectoral matrix assigning permitted foreign equity shares, entry routes (automatic or prior government approval) and accompanying conditions. It lists prohibited sectors, allows full foreign ownership in unlisted sectors subject to sectoral rules, and imposes recurring conditions such as licensing, compliance with sector statutes, mandatory minority divestment to Indian partners/public for specified activities, limits on foreign participation in certain services, and minimum capitalization or project-size requirements for designated sectors.

Export duty uniform ad valorem on iron ore and added specific excise on large-engine vehicles to protect domestic supply.
A uniform export duty at an ad valorem rate has been imposed on iron ore irrespective of iron content to conserve higher grade ore and ensure domestic availability; export duties on flat-rolled steel products and pipes have been exempted while duties on long steel products have been increased. Central excise duty on passenger vehicles above 1500 cc now carries an added specific duty component in addition to the existing ad valorem rate, with prior notifications issued to implement these changes effective immediately.

Special Economic Zone approvals advance formal permissions and conversions, with developer referrals to state government for comments.
The Board of Approval considered establishment and conversion proposals, recommending multiple Formal approvals across IT/ITES, sector specific, FTWZ and other SEZ categories, and recommended conversion of certain In Principle approvals to Formal Approval. The Board recorded prior approval and notification counts, reported employment and export growth figures for context, and referred developers' submissions to the relevant state government for comment after personal hearings where the state had withdrawn its recommendation.

Services sector borrowers eligible for external commercial borrowings for import of capital goods under approval route upon regulatory notification.
Borrowers in the services sector, specifically hotels, hospitals and software companies, are now permitted to obtain External Commercial Borrowings for the import of capital goods under the approval route rather than the automatic route, subject to a specified ceiling. This amendment takes effect upon issuance of regulatory notification or directions under the Foreign Exchange Management Act, 1999 and retains supervisory oversight through an approval requirement.

Duty drawback withdrawal: no drawback entitlement for rice, cement, iron and steel under amended customs rules.
Withdrawal of duty drawback for RICE (heading 1006), CEMENT (heading 2523) and IRON AND STEEL (Chapter 72) pursuant to Notification No. 64/2008-CUSTOMS (N.T.) dated 29-5-2008; drawback of Customs Duty, Central Excise Duty and Service Tax denied and the Drawback Rules, 1995 amended accordingly.

External Commercial Borrowing policy changes: higher approval limits for infrastructure and other borrowers and raised all-in-cost ceilings.
Modifications to the External Commercial Borrowing framework raise approval route limits for rupee expenditure-with a higher ceiling for infrastructure borrowers and an enhanced ceiling for other borrowers-and increase all in cost ceilings over six month LIBOR for three to five year and over five year maturities. The changes apply to both automatic and approval routes while other ECB conditions remain unchanged. Amendments take effect upon Reserve Bank notification under the Foreign Exchange Management Act. Separately, FII debt investment ceilings for government securities and corporate bonds are increased and SEBI will be advised to act.

Input credit entitlement upheld for capital goods and inputs used in exported or home-consumed goods, limiting denial on procedural lapses.
Entitlement to input credit was upheld where goods and components used to fabricate or install pollution control equipment qualified as capital goods; refunds for inputs in waste destined for export were allowed; procedural defects in invoices did not justify denial of credit if duty-paid goods were used; credit on scrap removed on payment of duty need not be disallowed where reversals or duty payments occurred; apportionment under reversal rules for mixed excisable and non-excisable production was treated as acceptable.

Service tax treatment clarified for export qualification, agency classification, business auxiliary services, and goods-versus-services valuation.
Service tax treatment clarified: export of services must be assessed according to the Export Services Rules applicable to the disputed period regarding convertible foreign exchange; misclassified collections may be appropriated against correct liabilities and employee wages generally lack abatement; franchise/promotional arrangements can constitute business auxiliary services based on contract terms and commission flows; transfer of intellectual property without paid technical assistance is not taxable as a service; and value of goods sold (such as SIM cards) is excluded from service tax on activation services.

Refund of Unutilized Cenvat Credit: exporters meeting amended Rule 5 requirements may claim refunds despite pre amendment exports.
Whether refund under Rule 5 of the Cenvat Credit Rules, 2004 extends to unutilized credit attributable to export of taxable services rendered before the rule was amended on 14-3-2006. Where refund claims were filed after the amendment and complied with the requirements of Rule 5 and the notifications, the tribunal rejected the prospectivity argument and concluded that acceptance of claims cannot be conditioned on the exports having taken place after the amendment date.

Duty computation with depreciation protects use of imported capital goods when export obligations are only partially fulfilled
When an export-oriented unit partly fulfills export obligation but has used imported capital goods, customs duty should be computed after allowing depreciation; exporters may still claim drawback if duty-paid inputs were used and the value-added product is exported; licences debited via DEPB/DEEC scripts should be revalidated to the extent of such debits subject to examination for unjust enrichment; designated authorities must conduct requested sunset reviews and governments must consider their recommendations.

Penalty enhancement in revision orders restricted where original subordinate order has merged, limiting revisionary jurisdiction.
Enhancement of penal orders in revision is impermissible where the original subordinate order has merged into an appellate order; the Commissioner lacks jurisdiction to pass a fresh revisionary order once the Assistant Commissioner's order no longer exists independently. Catering supplied within a factory was held to be a welfare activity not connected to manufacture or clearance and therefore not an input service eligible for cenvat credit.

Clubs and association services: trade associations' member services classified as taxable, not charitable or self-service under service tax rules.
Trade associations providing services to members are taxable as clubs and association services; their activities are not charitable or public-service in character because they collect membership fees and operate for trade interests. Services by unincorporated associations to members are not "self service" under the Explanation to the Finance Act and are taxable when provided for cash, deferred payment, or other valuable consideration.

Customs revenue increase outpaced excise declines; overall indirect tax receipts rose year-on-year in April month.
Customs collections rose from Rs. 7,221 crore to Rs. 9,018 crore (24.9% growth) while Central Excise receipts declined from Rs. 6,673 crore to Rs. 6,410 crore (-3.9%); combined Customs and Excise revenue increased from Rs. 13,894 crore to Rs. 15,428 crore (11.0%). Excise figures exclude cess not administered by the Department of Revenue. The figures are provisional monthly year on year comparisons.