Exchange Rate Determination: Revised customs exchange rates for specified foreign currencies effective from September, impacting valuation of imports.
The Board, under section 14(3)(a)(i) of the Customs Act, has superseded Notification No.48/2002 and fixed the rate of exchange for specified foreign currencies for conversion into Indian rupees and vice versa. Two schedules are prescribed: Schedule I gives rates per one unit of listed currencies and Schedule II gives the rate per one hundred units for the Japanese Yen; these rates apply with effect from 1st September, 2002 for purposes of customs valuation of imported goods.

Concessional duty recognition: government directs no recovery where concessional rate was applied to paperboard imports for manufacture.
The Central Government recognises that, by prevailing practice, concessional customs duty was applied to goods imported for use in or supply to units manufacturing paperboard subject to the annexure conditions, and directs that duties not levied in accordance with that practice during the specified period shall not be required to be paid.

Advance rulings for customs: establishes prescribed application form, filing, signing, verification, and certification procedures.
The rules prescribe the procedure for obtaining Advance Rulings under the Customs Act, including scope, definitions and that applications must be made in the prescribed Form and filed in quadruplicate. Applications must include specified particulars, a verification and annexures signed by competent persons according to the applicant's status, and be accompanied by the prescribed fee. The Form requires detailed factual statements, the precise question of law or fact, the applicant's interpretation, and a declaration that the question is not pending elsewhere. Rulings must be transmitted to the applicant and Commissioner and certified true by the Commissioner or authorized officer.

Advance Ruling procedure sets application form, filing, signature, annexure and certified ruling transmission requirements.
These rules prescribe the procedure for obtaining advance rulings under the Central Excise Act: applications must be filed in the prescribed Form-AAR(CE) in quadruplicate, signed by authorised persons according to legal status, accompanied by verification, annexures stating facts and legal interpretation, supporting documents and the prescribed fee; the Authority must send certified true copies of its rulings to the applicant and the relevant Commissioner, with certification by the Commissioner or an authorised officer.

Exemption for polyester-cotton blended fibres now allowed for Khadi-sector bodies subject to hand-spinning certification and restricted use.
The amendment adds a tariff exemption for polyester staple fibres blended with cotton manufactured by Khadi-sector factories or approved organizations, revises the yarn description accordingly, and inserts condition 23A requiring a clearance-time certificate that the fibres will be hand spun into yarns for use only in the manufacture of Poly Vastra. Condition 24 is substituted to require purchase by a Khadi-sector factory with payment by cheque from the Khadi-sector account and a certificate that the yarn will be used exclusively for Poly Vastra.

Deductibility of earthquake relief donations: prescribed authority to review audited separate accounts and determine taxability and compliance.
Rule 18AAAA designates the Director General of Income-tax (Exemptions) as the prescribed authority under section 80G(5C) to receive audited separate accounts from approved trusts, funds or institutions for Gujarat earthquake relief. Such entities must maintain distinct income and expenditure accounts, have them audited by an accountant as per section 288(2), and file Form No.10AA. The authority will determine whether donations are chargeable under clause (23C) of section 10 or section 12, give the assessee an opportunity if findings are adverse, and inform the assessing officer within one month.

Tax exemption under clause (23C)(v) granted subject to income application, permitted investments, business incidental rule, filing and dissolution transfer.
Notification designates Jal Phiroj Clubwala Dar-E-Meher, Chennai as eligible for tax exemption under the Income-tax Act for specified assessment years, conditional on exclusive application of income to its objects, permitted modes of investment, business income being incidental with separate books, regular filing of income-tax returns, and transfer of surplus and assets to a charitable organization with similar objectives upon dissolution.

Tax exemption notification for charitable trust granted subject to income application, investment, business and dissolution compliance.
Notification designates Sir Ratan Tata Trust as eligible under clause (23C)(iv) of section 10 for specified assessment years, subject to conditions: income must be applied or accumulated solely for its objects; investments and deposits limited to permitted forms; business income excluded unless incidental with separate accounts; regular filing of income-tax returns; and on dissolution surplus assets must transfer to a similarly purposed charitable organization.

Tax exemption recognition for charitable institution under income tax law granted subject to compliance and investment conditions.
The Central Government notifies Sri Sarda Math as a charitable institution under clause (23C)(v) of section 10 for assessment years 2002 2003 to 2004 2005 subject to conditions: apply income wholly to institutional objects; invest only in permitted investment modes (voluntary contributions may be held as jewellery, furniture, etc.); business income excluded unless incidental and separately accounted; regular filing of income tax returns; and transfer of surplus/assets to a like charitable organization on dissolution.

Export service charge cap for Bangalore Rose and Krishnapuram onions; designated agencies to issue NOCs and certify consignments.
The amendment caps service charges levied by designated STEs for issuance of fresh NOCs to associate shippers and prohibits any other charges; designated agencies (KAPPEC, KSCMF, APMARKFED) must follow NAFED procedures, issue NOCs against letters of credit, and certify stuffing and sealing of consignments for their assigned onion varieties.

Duty drawback extension to furnace oil supplies permits All Industry Rate for supplies to domestic SEZ companies under FTP.
Applicability of the All Industry Rate duty drawback of Rs. 850 per M.T. is extended to supplies of furnace oil to domestic companies in Special Economic Zones, making such supplies eligible for the previously notified drawback rate. The extension is effected under paragraph 2.4 of the Export and Import Policy, 2002-2007, with reference to the All Industry Rate notified under notification no. 8 (RE-2002).

Appointment of Common Adjudicating Authority: Commissioner empowered to adjudicate specified show-cause notice under Customs Act provisions.
The Central Board, under statutory Customs Act powers, appointed the Commissioner of Customs (General), New Custom House, New Delhi to act as Commissioner of Customs for specified units (ICD Tughlakabad, Air Cargo Unit New Custom House, Custom House Kolkata, Air Cargo Complex Kolkata) for the sole purpose of adjudicating the show-cause notice issued to M/s. Chandna Impex Private Limited and others by the revenue intelligence unit.

Cenvat credit restriction clarified: exemption applies where no credit on inputs or exclusive capital goods has been availed.
The exemption at S.No. 122 is clarified to be satisfied where no CENVAT credit has been availed for (i) inputs and (ii) capital goods used exclusively in manufacture of those goods, with the non availment linked to the CENVAT Credit Rules; the Explanation is inserted into the notification and given retrospective effect.

Income-tax exemption under clause (23): notified association granted tax-exempt status subject to application, investment and business conditions.
The Central Government notifies the All India Cricket Association for the Disabled under clause (23) of section 10, granting exemption for specified assessment years provided the association applies or accumulates income per section 11(2) and (3) as modified, confines investments to modes in section 11(5) (except certain notified tangible voluntary contributions), does not distribute income to members except by grants to affiliated bodies, and excludes business income unless incidental and maintained in separate books.

Tax exemption recognition for a sports federation conditioned on exclusive application of income and restricted investments.
Notification designates the All India Chess Federation, Calicut under clause (23) of section 10 for specified assessment years subject to conditions: income must be applied or accumulated exclusively for its objects per section 11(2)-(3) as modified; investments confined to modes in section 11(5) except permitted forms for voluntary contributions; income may not be distributed to members except as grants to affiliated bodies; and business profits are excluded unless incidental and maintained in separate accounts.

Customs tariff amendment revises exemption schedules for specified goods, reallocating full, half and reduced exemption rates.
Amendment to the Table in Part B of Notification No. 105/99-Customs under sub-section (1) of section 25 of the Customs Act reassigns specific tariff headings and inserts new serial entries, specifying exemption percentages (primarily 100%, 50%, and 60%) for defined groups of goods by substituting and adding entries such as 12A, 18/18A/19, 23-26, 30/30A, 57A/57B, 62, 67-69, 72/72A and others, thereby revising the schedule of duty exemptions.

Rupee loans to NRI/PIO employees allowed subject to staff-scheme parity and mandatory NRO credit plus remittance-only repayment.
Insertion permits Indian incorporated bodies to grant rupee loans to NRI or PIO employees for personal purposes, including housing, provided loans follow the lender's staff welfare/housing loan schemes and resident-staff terms; loan proceeds must not be used for specified disallowed purposes; proceeds must be credited to the borrower's NRO account; and repayment must be by remittance from abroad or from the borrower's NRE/NRO/FCNR accounts, with lenders prohibited from accepting other sources.

Correction of notification wording: "Rural Bank" to be read as "Rural Development" in the income tax notice.
A corrigendum to Income Tax Notification S.O. 1780 dated 01.06.2002 directs that the words "Rural Bank" in Paragraph 2, fifth line, shall be read as "Rural Development", effected by Notification No. 222 and signed by the Under Secretary (IT-B).

Customs notification amendment adds automatic pocket welt sewing machine to the exemption list under Customs Act.
Amendment to Notification No. 21/2002-Customs substitutes S. No. (54) in the Annexure, List 30 to read: Automatic pocket welt sewing machine or Automatic pocket welting machine, thereby replacing the prior entry at that serial number and updating the tariff/exemption schedule description for customs classification.

Excise exemption for goods used within factory for manufacture of goods under chapter 71, removing duty on intra-factory inputs.
Amendment inserts a new tariff entry creating an excise duty exemption for all goods used within the factory of production when employed in the manufacture of goods covered by chapter 71, adding a nil duty serial entry to the Table of the principal notification No. 6/2002-Central Excise under the powers of section 5A of the Central Excise Act.