[C.B.E.C. Circular No. 465/31/99-CX, dated 1/7/1999]

Transaction cost – Action to reduce transaction cost – Instructions

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, dated 2/6/1998.

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.