Contents

Computation of storage and transit losses with regard to mineral oil products should be done at 15 degree centigrade

As per above circular unless some major components are locally manufactured or indigenously obtained, the other components when imported would be classified as the finished article and pay the duty as finished article. In case where no such manufacturing/real local sourcing is involved, the Central Excise formations may issue necessary show cause notices and wearable to the Commissioner of Customs of the port through which the goods have been imported. 

Prescribing procedure for sale of movable/immovable properties by Central Excise Officers for recovery of Central Excise dues

Reiteration of instructions Appeals against CEGAT orders in case other than involving determination of any question having a relation to the rate of duty or value of goods for purposes of assessment will not like Supreme Court.

Cut-float pile fabrics as well as uncut pile fabric both would be treated as woven pile fabrics not subjected to any process falling under sub-heading no.5801.21

Where simultaneously different cases of the same notice(s) involving the same issue are due to be adjudicated in a Commissionerate, all such cases will be adjudicated by an officer competent to decide the case where duty involved is of the highest amount.

Certain articles on plastics an exempted if no Modvat is taken. Simultaneous availment of this exemption, and payment of duty after availing modvat credit not to be allowed in the interest of accounting and revenue.

To determine whether an ayurvedic product is drugs or cosmetics, the fact that the assessee holds a drug licence is not relevant in interpreting a term under the Excise Act, resort should not be had to its scientific or technical meaning given under the Drugs and Cosmetics Act, 1940. Whether a product can be considered as drugs and cosmetics will have to be determined with reference to the objects of the Act under which the issue is to be decided. 

Used release paper(paper coated with polymers is classifiable under heading no.47.02

Personal computers when brought for the use of unit located in the EPZ/FTZ for maintenance of accounts will be eligible for exemption under notification 126/94-CE

Authentication of challan book under 57F(4) may be authenticated by the agent of the owner also.

Assessment of prickly heat powder to be finalized on the basis of 37B order classifying these products under heading no.33.04.

After self services provided on behalf of the manufacturer is to be included in the assessable value

Revised procedure to reduce delays in acceptance of proof of export where goods are exported through an Inland Container Depot/Customs Freight Stations (ICDs / CFSs) because of delayed receipt/non-receipt of the Transference Copies.

Liner Shelves, Middle Shelves, Tilting bottle shelves etc. made of M.S. grills for use in the refrigerators are appropriately classifiable under sub-heading 8418.90

Reiteration of earlier instructions regarding issue of pre-authenticated CT-3 form booklet to 100% EOUs 

Modvat credit is admissible of additional duty of customs paid on capital goods imported under project import regulation. This is subject to the capital goods being covered by the scope of capital goods defined in explanation to Rule 57Q.

Instructions for deciding cases of irregular availment of modvat credit should be decided within three months from the date of receipt of reply to the SCN.

Reiteration of earlier instructions for sending proposals to the Board for filing Civil Appeal. In case of any delay beyond 10 days from the date of receipt of the CEGAT Order in the Office of the Commissioner, a time chart explaining day-to-day delay and justificatory reasons must be furnished.

After the 1996 Budget, pesticides in bulk form will not all under heading no.38.08. These will fall either under chapters applicable to chemicals in general or under heading no.38.23, depending on whether these are separately defined elements or compounds or not.

Copies of Order-in-Original and Order-in-Appeal passed by Commissioner/Commissioner(A) involving public sector undertakings should be endorsed to judicial cell in Board’s Office

Bonds for exports without payment of duty should be verified immediately and should be accepted, if complete in all respects, and communicated to the exporters within 24 hours or the next working day.

Non admissibility of modvat credit of duty paid on inputs going into finished excisable goods which are exempted from payment of duty or chargeable to nil rate of duty will not apply to goods and materials recovered during the course of ship breaking which are outside the ambit of Sector XV of the schedule to the Central Excise Tariff Act, (as these are non excisable).

Modvat credit under Rule 57A of Central Excise Rules is admissible on transformer oil whose value is included in the value of the final product and it is contained in the transformers at the time of clearance from the factory.

Withdrawal of this two circulars as being infrucutuous consequent to issue of new drawback schedule with effect from 23.10.96

Whether re labelling of containers and re packing from bulk packs will amount to manufacture or not is a question to be decided on facts. However, activity such as simply transferring the material from one container to another container may not be categorized under the scope of this description.

Such instrument cluster is correctly classifiable under heading 87.08 as "parts and accessories of motor vehicles".

Calling for information for invoking the provisions of section 11C of the Central Excise Act 1944 with regard to cotton waste clearances by 100% E.O.U.s for the intervening period i.e. 23.7.96 to 29.2.97.

A fresh SCN can be issued by the department under the proviso for extended period when there is mis representation of facts, manipulation and fabrication of documents.

Exemption under notification no.203/92-Cus for Synthetic Adhesive for use in the manufacture of leather goods does not apply to Acrylamide which is neither a ‘Synthetic Adhesive’ nor is used as ‘Adhesive’ in the manufacture of leather goods.

An appeal against order remanding the case to the adjudicating authority will be justified only if the directions are not legally correct or proper. As far as possible, prior clearance of the Chief Commissioner may also be obtained for filing of appeal against Commissioner(A)’s order.

Introduction of MRP based levy to tooth paste, tooth powder and detergents.

Procedure for granting refund in respect of motor vehicle cleared as taxi or ambulance

Liquid vegetable extracts unless subjected to fermentation or other preservative processes are not "goods" Mixed or compounded vegetable extracts that have therapeutic or prophylactic value are appropriately classifiable under Heading 30.03. Single ingredient extracts are classifiable under Chapter 13. Single ingredient extracts when put up in measured does for therapeutic or prophylactic purposes or in forms of packing for retail sale for such purposes are appropriately classifiable under Heading 30.03.

Guidelines for deciding classification of Ayurvedic medicines in the light of Supreme Court judgement in the case of Shri Baidyanathh Ayurved Bhavan Limited Vs. CCE, Nagpur( 1996(83)ELT 492(SC)

Procedure and the time limit for sending proposals to the Board for Civil Appeals against CEGAT orders involving valuation and rate of duty

Issue of Notification nos.56/97-CE and 43/97-CE(NT) too 45/97-CE(NT) all dated the 30^th August, 1997 to make further changes in the scheme of production based levy for induction furnace units and hot re-rolling mills

In respect of clearances by 100% E.O.U.’s to the DTA, transaction value under Rule 3(1) of the Customs Valuation Rules, 1988, should be accepted by the assessing officer with respect to DTA clearances.

Reiteration of earlier instructions that whenever any appeal/petition is prepared to file by the Department before any Court or Tribunal in a matter relating to PSU, the Commissioner should send a self contained proposal for consideration of the Committee on Disputes along with relevant enclosures to the Board. 

Powers of adjudication of central excise officers

Changes in the scheme of production based levy for induction furnaces and re-rolling mills

Issue of notification no.23/97-CE(NT) and 25/97-CE(NT) notifying hot rolled steel product under production based levy and giving the procedure for determining annual capacity of production.

Issue of notification no.23/97-CE(NT) and 24/97-CE(NT) notifying ingots and billets of non-alloy steel under production based levy and giving the procedure for determining annual capacity of production.

The Central Excise(Fifth Amendment) Rules, 1997 –Technical Amendment 

SSI unit opting for pool exemption can avail exemption on goods cleared for home consumption and can also take credit of duty paid on inputs used in the manufacture of goods exported under bond on payment of duty subject to maintaining separate accounts.

Format for furnishing information on reversal of modvat credit when exports were effected under VBAL space scheme .

Modvat credit is admissible on raw materials used for making packing material that is subsequently used for packing of the final product.

Rubberised tyre cord fabric whether or not containing wefts used in the manufacture of cycle tyres is classifiable under heading 59.06

Copies of the CEGAT Order, Order-in-Original, Reference Application for Rectification of Mistake, Appeal Memos etc., should not be endorsed to the Board.

Procedure or reversal of modvat credit and payment of interest where exports were effected under value based advance license before 31.1.97 and subsequent issue of certificate .

Unjust enrichment under section 11B would apply to refunds if credit notes have been issued subsequent to the clearance.

Action to recover dues from public sector undertakings should be taken as soon as the committee of disputes does not allow the PS U’s to pursue their appeals

Ready Mix Concrete and Concrete Mix are separate commodities. Ready Mix Concrete is chargeable to excise duty @ 13% under sub-heading no.3824.20. The exemption for concrete mix manufactured at site vide S.No.51 of Notification no.4/97-CE dt.1.3.1997 does not apply to ready mix concrete

Benefit of 1/95 applies to excisable goods used in a 100% EOU for manufacture and packaging of articles. The expression manufacture in this notification has a wider meaning then that used in section 2(f). Specifically, the benefit of the exemption will be available to a 100% EOU engaged in galvanizing.

Revised procedure for filing Civil Appeal against CEGAT orders involving rate of duty and valuation. Jurisdictional Commissioner could be primarily responsible for examining the order and sent proposal to Board within ten days from the date of receipt of the certified copy of CEGAT order in his office.

Issue of SCN invoking the proviso to Section 11A not to be resorted to even when there is no fraud or misdeclaration, etc., for example, where there has been an established practice well within the knowledge of the Department. 

Maintenance of Register of Scrutiny of RT-12 Returns and Revenue Realizations.

Clarification regarding procedure to be followed prior goods are transshipped from one vehicle to other/others.

Fruit pulp based drinks under heading 2202.30 will include frozen fruit pulp based drinks but would not include fruit juice or fruit juice concentrate based drinks( Heading 2202.91 or 2202.99) 

The process of putting together the duty paid articles into a container like carton, kit etc. so that a new commercially distinct product viz. Cable Jointing Kits comes into existence would amount to manufacture. Such Cable Jointing Kits are classifiable under heading 85.47 .

Clarificatory amendment to provide that glassware produced by semi automatic process (heading no.70.07 to 70.15) would attract a duty of 8% and not the higher rate prescribing notification no.5/97

A job worker cannot take credit of duty paid on inputs received from the original manufacturers

No certificate regarding non-availment of modvat credit should be issued by the Central Excise formations to the merchant exporters who had not declared the details of their supporting manufacturers in the manner prescribed under the Duty Exemption Scheme.

Facility under circular no.284/118/96 to certain exporters to execute bond without security/surety extended to trading houses.

Facility of duty free clearances of the intermediate goods for the manufacture of export goods should not be denied on the ground that chapter X procedures could not be followed by a unit manufacturing intermediate goods and the export goods in the same unit.

Plastic sheets necessary for making green house eligible for exemption. For determining the eligibility of this notification to any item, the criteria adopted should be its essentially with reference to production, manufacture, packaging of an item specified in Annexure-II to notification 136/94-CE

Credit admissible for inputs like chemicals and resins used in the manufacture of sand moulds for subsequent production of iron castings

Amendment in RT-12 to provide for opening and closing balance

Power of adjudication of Additional Commissioner, Deputy Commissioner and Assistant Commissioner.

To check whether assessment is provisional before issuing SCN or passing adjudication order.

Further procedure to monitor finalization of provisional assessment

Procedure for clearance on budget day, and pre budget day

Need to issue SCN on receipt of audit objections

Relaxation in the procedure for export of goods under claim for rebate

Procedure for marking of invoices for dealers prior to 1.4.97.

NGL- Cumulative loss towards storage, transits and handling restricted to a maximum 0.5%

Norms for disposal of appeals by Commissioner(Appeal)

Circumstances in which waiver of issue of SCN to be allowed.

17/1/97

Air conditioners required for manufacture or production by 100% EOU/EHTP/STP unit in FTZ to be treated as capital goods and eligible for exemption under notification 1/95

14/1/97 

Detailed procedure for resorting to provisional assessment and monitoring.

14/1/97

Deduction on account of freight/invoices for multiproduct, multifactory companies to be allowed pro rata on average basis.

13/1/97

Regularization of Modvat credit taken on the strength of invoice/gatepass issued by 100% EOU during 11.08.94 to 12.02.96. 

Procedure for reversal of modvat credit in respect of exports affected under VABAL before 31.01.97.