[C.B.E.C. Circular No. 465/31/99-CX, dated 1/7/1999]
Transaction cost Action to reduce transaction
I am directed to say that the trade and Industry
has represented before the High-Powered Committee on Transaction
Costs, for certain modifications in the procedures, especially relating
to exports which will ultimately ensure reduction in the transaction
cost for the exporters.
2. The first request is that Inspectors and Superintendents
should put stamp with their full name. On the documents verified
and signed by them so that at the time of subsequent processing
of documents cross-verification from the concerned officer is possible
without any delay. The Board has accepted this recommendation. Accordingly,
it is directed that all the Central Excise Officers should put stamps
with their full name on the documents verified and signed by them.
3. Secondly, it has been stated that proof of export
is required to be submitted to the Division Office, where bond is
opened. Range office always insists on written communication for
acceptance of Proof of Export by division office from exporters.
Once the proof of export is submitted to Division Office it should
be communicated directly to the Range Office without involving exporters.
Documents may be scrutinised at the time of submission. It has been
required that the Range Office should not insist that exporters
bring written communication from Division Office. The Board has
accepted this request and accordingly directs that it will be the
responsibility of the Divisional Office to send certificate of proof
or export to the Range Officer immediately on its issue. The exporters
should not be insisted upon to bring it from the Divisional Offices.
[Commissioner of Central Excise Trade Notice
No. 21/Gl-18/C.E./PRO/CAL-II/1999, dated 10/3/1999]
Video cassettes made from unrecorded video cassettes
Excisability of [Chapter 85]
Attention of the Trade and field formations is
invited to the fact that from 1986 to 1997, the Central Excise Tariff
covered the video cassettes under sub-heading 8524.24 (changed to
8524.34 under Budget 1996) and the unrecorded video cassettes under
8523.14. Under Finance Act 1997 (effective from 14/5/1997) note
7 was inserted in Chapter 85 treating recording of sound or other
phenomenon amounting to manufacture.
2. Recorded video cassettes containing tapes of
width exceeding 15mm (Betacom) were exempt from 1/3/1989 to 1/3/1997
vide Notification Nos. 83/89, 74/90, 48/94 and 8/96. During Budget
1997, these types of video cassettes got the Tariff entry against
Heading 85.24 specifically covered under the newly created sub-heading
8524.34. In 1998 Budget, this separate entry was done away with
and simultaneously under Notification No. 5/98, dated 2/6/1998 (Sl.
No. 226) full exemption was allowed.
3. For recorded video cassettes containing tapes
of width exceeding 15mm (U-matic or other similar format) there
was exemption available. However, vide Notification Nos. 83/89,
74/90, and 48/94, the television image and sound recorded media
such as video tapes and video disks were exempt provided such articles
are made from unrecorded articles and are intended for sale or supply
in U-matic video tape formats of width not less than 19 mm to Doordarshan.
This exemption was withdrawn w.e.f. 23/7/1996. During Budget 1997,
this type of video cassettes fell under separate sub-heading 8524.35
carrying duty @ 18% adv. which was changed in sub-heading 8524.34
during Budget 1998 but finally got covered under Notification 5/98,
4. Waiver of duty under Section 11c for both types
of video cassettes intended for television broadcasting, is being
considered by the C.B.E.C.