(1) This Act may be called the Finance Act, 1988.

(2) Save as otherwise provided in this Act, Sections 2 to 75 and Sections 86 to 88 shall be deemed to have come into force on the 1st day of April, 1988.

RATES OF INCOME-TAX

(1) Subject to the provisions of sub-sections (2) and (3), for the assessment year commencing on the 1st day of April, 1988, income-tax shall be charged at the rates specified in Part I of the First Schedule and shall be increased,

(a) in the cases to which Paragraphs A, B, C and D of that Part apply, by a surcharge for purposes of the Union; and

(b) in the cases to which Paragraph E of that Part applies, by a surcharge,

calculated in each case in the manner provided therein.

(2) In the cases to which Sub-Paragraph I or Sub-Paragraph II of Paragraph A of Part I of the First Schedule applies, where the assessee has, in the previous year, any net agricultural income exceeding six hundred rupees, in addition to total income, and the total income exceeds,

(i) in a case to which the said Sub-Paragraph I applies, eighteen thousand rupees, and

(ii) in a case to which the said Sub-Paragraph II applies, twelve thousand rupees,

then,

(a) the net agricultural income shall be taken into account, in the manner provided in clause (b) [that is to say, as if the net agricultural income were comprised in the total income after,

(i) in a case to which the said Sub-Paragraph I applies, the first eighteen thousand rupees, and

(ii) in a case to which the said Sub-Paragraph II applies, the first twelve thousand rupees,

of the total income but without being liable to tax], only for the purpose of charging income-tax in respect of the total income; and

(b) the income-tax chargeable shall be calculated as follows:

(i) the total income and the net agricultural income shall be aggregated and the amount of income-tax shall be determined in respect of the aggregate income at the rates specified in Sub-Paragraph I or, as the case may be, Sub-Paragraph II of the said Paragraph A, as if such aggregate income were the total income;

(ii) the net agricultural income shall be increased,

(A) in a case to which the said Sub-Paragraph I applies, by a sum of eighteen thousand rupees; and

(B) in a case to which the said Sub-Paragraph II applies, by a sum of twelve thousand rupees,

and the amount of income-tax shall be determined in respect of the net agricultural income as so increased at the rates specified in Sub-Paragraph I or, as the case may be, Sub-Paragraph II of the said Paragraph A, as if the net agricultural income as so increased were the total income;

(iii) the amount of income-tax determined in accordance with sub-clause (i) shall be reduced by the amount of income-tax determined in accordance with sub-clause (ii) and the sum so arrived at shall be the income-tax in respect of the total income:

Provided that the amount of income-tax so arrived at shall, in the case of every person having a total income exceeding fifty thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of five per cent. of such income-tax and the sum so arrived at shall be the income-tax in respect of the total income.

(3) In cases to which the provisions of Chapter XII or Chapter XII-A or sub-section (1-A) of Section 161 or Section 164 or Section 164-A or Section 167-A of the Income-tax Act, 1961 (43 of 1961) (hereinafter referred to as the Income-tax Act) apply, the tax chargeable shall be determined as provided in that Chapter or that section, and with reference to the rates imposed by sub-section (1) or the rates as specified in that Chapter or section, as the case may be:

Provided that in respect of any income chargeable to tax under Section 115-B or Section 115-BB of the Income-tax Act, the income-tax computed under Section 115-B or Section 115-BB shall be increased by a surcharge for purposes of the Union calculated at the rate of five per cent. of such income-tax.

(4) In cases in which tax has to be deducted under Sections 193, 194, 194-A, 194-B, 194-BB, 194-D and 195 of the Income-tax Act at the rates in force, the deduction shall be made at the rates specified in Part II of the First Schedule and shall be increased,

(a) in the cases to which the provisions of sub-item (a) of item 1 of that Part apply, by a surcharge for purposes of the Union; and

(b) in the cases to which the provisions of sub-item (a) of item 2 of that Part apply, by a surcharge,

calculated in each case in the manner provided therein.

(5) In cases in which tax has to be deducted under Section 194-C of the Income-tax Act, the deduction shall be made at the rates specified in that section and shall be increased by a surcharge for purposes of the Union calculated at the rate of five per cent. of such deduction.

(6) In cases in which tax has to be collected under Section 206-C of the Income-tax Act, the collection shall be made at the rate specified in that section and shall be increased by a surcharge for purposes of the Union calculated at the rate of five per cent. of such collection.

(7) Subject to the provisions of sub-section (8), in cases in which income-tax has to be calculated under the first proviso to sub-section (5) of Section 132 of the Income-tax Act or charged under sub-section (4) of Section 172 or sub-section (2) of Section 174 or Section 175 or sub-section (2) of Section 176 of the said Act or deducted under Section 192 of the said Act from income chargeable under the head Salaries or in which the advance tax payable under Chapter XVII-C of the said Act has to be computed at the rate or rates in force, such income-tax, or as the case may be, advance tax shall be so calculated, charged, deducted or computed at the rate or rates specified in Part III of the First Schedule and shall be increased,

(a) in the cases to which Paragraphs A, B, C and D of that Part apply, by a surcharge for purposes of the Union; and

(b) in the cases to which Paragraph E of that Part applies, by a surcharge,

calculated in each case in the manner provided therein:

Provided that in cases to which the provisions of Chapter XII or Chapter XII-A or sub-section (1-A) of Section 161 or Section 164 or Section 164-A or Section 167-B of the Income-tax Act apply, advance tax shall be computed with reference to the rates imposed by this sub-section or the rates as specified in that Chapter or section, as the case may be:

Provided further that in respect of any income chargeable to tax under Section 115-B of the Income-tax Act, the advance tax computed under the first proviso shall be increased by a surcharge for purposes of the Union calculated at the rate of five per cent. of such advance tax .

(8) In the cases to which Sub-Paragraph I or Sub-Paragraph II of Paragraph A of Part III of the First Schedule applies, where the assessee has, in the previous year or, if by virtue of any provision of the Income-tax Act, income-tax is to be charged in respect of the income of a period other than the previous year, in such other period, any net agricultural income exceeding six hundred rupees, in addition to total income and the total income exceeds,

(i) in a case to which the said Sub-Paragraph I applies, eighteen thousand rupees, and

(ii) in a case to which the said Sub-Paragraph II applies, twelve thousand rupees,

then, in calculating income-tax under the first proviso to sub-section (5) of Section 132 of the Income-tax Act or in charging income-tax under sub-section (2) of Section 174 or Section 175 or sub-section (2) of Section 176 of the said Act or in computing the advance tax payable under Chapter XVII-C of the said Act, at the rate or rates in force,

(a) the net agricultural income shall be taken into account, in the manner provided in clause (b) [that is to say, as if the net agricultural income were comprised in the total income after,

(i) in a case to which the said Sub-Paragraph I applies, the first eighteen thousand rupees, and

(ii) in a case to which the said Sub-Paragraph II applies, the first twelve thousand rupees,

of the total income but without being liable to tax], only for the purpose of calculating, charging or computing such income-tax or, as the case may be, advance tax in respect of the total income; and

(b) such income-tax or, as the case may be, advance tax shall be so calculated, charged or computed as follows:

(i) the total income and the net agricultural income shall be aggregated and the amount of income-tax or advance tax shall be determined in respect of the aggregate income at the rates specified in Sub-Paragraph I or, as the case may be, Sub-Paragraph II of the said Paragraph A, as if such aggregate income were the total income;

(ii) the net agricultural income shall be increased,

(A) in a case to which the said Sub-Paragraph I applies, by a sum of eighteen thousand rupees; and

(B) in a case to which the said Sub-Paragraph II applies, by a sum of twelve thousand rupees,

and the amount of income-tax or advance tax shall be determined in respect of the net agricultural income as so increased at the rates specified in the said Sub-Paragraph I or, as the case may be, the said Sub-Paragraph II, as if the net agricultural income as so increased were the total income;

(iii) the amount of income-tax or advance tax determined in accordance with sub-clause (i) shall be reduced by the amount of income-tax or, as the case may be, advance-tax determined in accordance with sub-clause (ii) and the sum so arrived at shall be the income-tax or, as the case may be, advance tax in respect of the total income:

Provided that the amount of income-tax or advance-tax so arrived at shall, in the case of every person having a total income exceeding fifty thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of five per cent. of such income-tax or, as the case may be, advance tax and the sum so arrived at shall be the income-tax or, as the case may be, advance tax in respect of the total income.

(9) For the purposes of this section and the First Schedule,

(a) company in which the public are substantially interested means a company within the meaning of clause (18) of Section 2 of the Income-tax Act, and includes a subsidiary of such company if the whole of the share capital of such subsidiary company has been held by the parent company or by its nominees throughout the previous year;

(b) domestic company means an Indian company, or any other company which, in respect of its income liable to income-tax under the Income-tax Act for the assessment year commencing on the 1st day of April, 1988, has made the prescribed arrangements for the declaration and payment within India of the dividends (including dividends on preference shares) payable out of such income in accordance with the provisions of Section 194 of the Act;

(c) insurance commission means any remuneration or reward, whether by way of commission or otherwise, for soliciting or procuring insurance business (including business relating to the continuance, renewal or revival of policies of insurance);

(d) investment company means a company whose gross total income (as defined in Section 80-B of the Income-tax Act) consists mainly of income which is chargeable under the heads Interest on securities , Income from house property , Capital gains and Income from other sources ;

(e) net agricultural income , in relation to a person, means the total amount of agricultural income, from whatever source derived, of that person computed in accordance with the rules contained in Part IV of the First Schedule;

(f) tax-free security means any security of the Central Government issued or declared to be income-tax free, or any security of a State Government issued income-tax free, the income-tax whereon is payable by the State Government;

(g) trading company means a company whose business consists mainly in dealing in goods or merchandise manufactured, produced or processed by a person other than that company and whose income attributable to such business included in its gross total income (as defined in Section 80-B of the Income-tax Act) is not less than fifty-one per cent. of the amount of such gross total income;

(h) all other words and expressions used in this section or in the First Schedule but not defined in this sub-section and defined in the Income-tax Act shall have the meanings respectively assigned to them in that Act.

DIRECT TAXES

In Section 2 of the Income-tax Act, after clause (28-A), the following clause shall be inserted with effect from the 1st day of April, 1989, namely:

(28-B) interest on securities means

(i) interest on any security of the Central Government or a State Government;

(ii) interest on debentures or other securities for money issued by or on behalf of a local authority or a company or a corporation established by a Central, State or Provincial Act; .

In Section 10 of the Income-tax Act,

(a) in clause (6),

(i) for sub-clauses (ii) to (v), the following sub-clause shall be substituted with effect from the 1st day of April, 1989, namely:

(ii) the remuneration received by him as an official, by whatever name called, of an embassy, high commission, legation, commission, consulate or the trade representation of a foreign State, or as a member of the staff of any of these officials, for service in such capacity:

Provided that the remuneration received by him as a trade commissioner or other official representative in India of the Government of a foreign State (not holding office as such in an honorary capacity), or as a member of the staff of any of those officials, shall be exempt only if the remuneration of the corresponding officials or, as the case may be, members of the staff, if any, of the Government resident for similar purposes in the country concerned enjoys a similar exemption in that country:

Provided further that such members of the staff are subjects of the country represented and are not engaged in any business or profession or employment in India otherwise than as members of such staff; ;

(ii) in sub-clause (vii-a),

(1) in the opening paragraph, the brackets, words, figures and letters commencing from a date after the 31st day of March, 1971) shall be omitted;

(2) in item (A), for the brackets, letter and words (A) such remuneration due to or received by him , the following shall be substituted, namely:

(I) where such services commence from a date after the 31st day of March, 1971, but before the 1st day of April, 1988,

(A) such remuneration due to or received by him ;

(3) in the proviso, for the words Provided that , the following shall be substituted, namely:

(II) where such services commence from a date after the 31st day of March, 1988, and the tax on his income chargeable under the head Salaries is paid to the Central Government by the employer (which tax, in the case of an employer, being a company, may be paid notwithstanding anything contained in Section 200 of the Companies Act, 1956 (1 of 1956), the tax so paid by the employer for a period not exceeding forty-eight months commencing from the date of his arrival in India:

Provided that nothing in this item shall relate to a period exceeding twenty-four months commencing from the date of his arrival in India if the approval of the Central Government for his employment in India for such period is not obtained before the 1st day of October of the relevant assessment year:

Provided further that;

(b) in clause (6-A), in the Explanation, for the words For the purposes of this clause , the words, brackets, figure and letter For the purposes of this clause and clause (6-B) shall be substituted;

(c) after clause (6-A), the following clause shall be inserted, namely:

(6-B) where in the case of a non-resident (not being a company) or of a foreign company deriving income (not being salary, royalty or fees for technical services) from Government or an Indian concern in pursuance of an agreement entered into by the Central Government with the Government of a foreign State or an international organisation, the tax on such income is payable by Government or the Indian concern to the Central Government under the terms of that agreement or any other related agreement approved by the Central Government, the tax so paid; ;

(d) in clause (15), after sub-clause (ii-b), the following sub-clause shall be inserted with effect from the 1st day of April, 1989, namely:

(ii-c) in the case of an individual or a Hindu undivided family, interest on such Relief, Bonds as the Central Government may, by notification in the Official Gazette, specify in this behalf; ;

(e) in clause (20), the words Interest on securities , shall be omitted with effect from the 1st day of April, 1989;

(f) in clause (23-A), the words Interest on securities or shall be omitted with effect from the 1st day of April, 1989;

(g) in clause (23-D) [as inserted by clause (m) of Section 6 of the Direct Tax Laws (Amendment) Act, 1987 (4 of 1988)],

(i) for the words any income from , the words any income of shall be substituted;

(ii) for the words the income from the Mutual Fund shall be distributed to the unit holders , the words such income shall be distributed to the holders of its units shall be substituted;

(h) in clause (24), the words Interest on securities ,' shall be omitted with effect from the 1st day of April, 1989;

(i) after clause (30), the following clause shall be inserted with effect from the 1st day of April, 1989, namely:

(31) in the case of an assessee who carries on the business of growing and manufacturing rubber, coffee, cardamom or such other commodity in India, as the Central Government may, by notification in the Official Gazette, specify in this behalf, the amount of any subsidy received from or through the concerned Board under any such scheme for replantation or replacement of rubber plants, coffee plants, cardamom plants or plants for the growing of such other commodity or for rejuvenation or consolidation of areas used for cultivation of rubber, coffee, cardamom or such other commodity as the Central Government may, by notification in the Official Gazette, specify:

Provided that the assessee furnishes to the Assessing Officer, along with his return of income for the assessment year concerned or within such further time as the Assessing Officer may allow, a certificate from the concerned Board, as to the amount of such subsidy paid to the assessee during the previous year.

Explanation. In this clause, concerned Board means

(i) in relation to rubber, the Rubber Board constituted under Section 4 of the Rubber Act, 1947 (24 of 1947),

(ii) in relation to coffee, the Coffee Board constituted under Section 4 of the Coffee Act, 1942 (8 of 1942),

(iii) in relation to cardamom, the Spices Board constituted under Section 3 of the Spices Board Act, 1986 (10 of 1986),

(iv) in relation to any other commodity specified under this clause, any Board or other authority established under any law for the time being in force which the Central Government may, by notification in the Official Gazette, specify in this behalf. .

In Section 10-A of the Income-tax Act, with effect from the 1st day of April, 1989,

(a) in sub-section (7), for the words, brackets and figures before the expiry of the time allowed under sub-section (1) or sub-section (2) of Section 139, whether fixed originally or on extension, for furnishing the return of income , the words, brackets and figures before the due date for furnishing the return of income under sub-section (1) of Section 139 shall be substituted;

(b) in sub-section (8) [as inserted by Section 126 of the Direct Tax Laws (Amendment) Act, 1987 (4 of 1988)],

(i) for the words in this section , the words, brackets and figure in sub-section (5) shall be substituted;

(ii) for the words purposes of this section , the words purposes of that sub-section shall be substituted.

After Section 10-A of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 1989, namely:

10-B. Special provision in respect of newly established hundred per cent. export oriented undertakings. (1) Subject to the provisions of this section, any profits and gains derived by an assessee from a hundred per cent. export-oriented undertaking (hereafter in this section referred to as the undertaking) to which this section applies shall not be included in the total income of the assessee.

(2) This section applies to any undertaking which fulfils all the following conditions, namely:

(i) it manufactures or produces any article or thing;

(ii) it is not formed by the splitting up, or the reconstruction, of a business already in existence:

Provided that this condition shall not apply in respect of any undertaking which is formed as a result of the re-establishment, reconstruction or revival by the assessee of the business of any such industrial undertaking as is referred to in Section 33-B, in the circumstances and within the period specified in that section;

(iii) it is not formed by the transfer to a new business of machinery or plant previously used for any purpose.

Explanation. The provisions of Explanation 1 and Explanation 2 to sub-section (2) of Section 80-I shall apply for the purposes of clause (iii) of this sub-section as they apply for the purposes of clause (ii) of that sub-section.

(3) The profits and gains referred to in sub-section (1) shall not be included in the total income of the assessee in respect of any five consecutive assessment years, falling within a period of eight years beginning with the assessment year relevant to the previous year in which the undertaking begins to manufacture or produce articles or things, specified by the assessee at his option:

Provided that nothing in this sub-section shall be construed to extend the aforesaid five assessment years to cover any period after the expiry of the said period eight years.

(4) Notwithstanding anything contained in any other provision of this Act, in computing the total income of the assessee of the previous year relevant to the assessment year immediately succeeding the last of the relevant assessment years, or of any previous year relevant to any subsequent assessment year,

(i) Section 32, Section 32-A, Section 33 and clause (ix) of sub-section (1) of Section 36 shall apply as if every allowance or deduction referred to therein and relating to or allowable for any of the relevant assessment years, in relation to any building, machinery, plant or furniture used for the purposes of the business of the undertaking in the previous year relevant to such assessment year or any expenditure incurred for the purposes of such business in such previous year had been given full effect to for that assessment year itself and accordingly sub-section (2) of Section 32, clause (ii) of sub-section (3) of Section 32-A, clause (ii) of sub-section (2) of Section 33 or the second proviso to clause (ix) of sub-section (1) of Section 36, as the case may be, shall not apply in relation to any such allowance or deduction;

(ii) no loss referred to in sub-section (1) of Section 72 or sub-section (1) or sub-section (3) of Section 74, in so far as such loss relates to the business of the undertaking, shall be carried forward or set off where such loss relates to any of the relevant assessment years;

(iii) no deduction shall be allowed under Section 80-HH or Section 80-HHA or Section 80-I in relation to the profits and gains of the undertaking; and

(iv) in computing the depreciation allowance under Section 32, the written down value of any asset used for the purposes of the business of the undertaking shall be computed as if the assessee had claimed and been actually allowed the deduction in respect of depreciation for each of the relevant assessment years.

(5) Where the undertaking has begun to manufacture or produce articles or things in any previous year relevant to the assessment year commencing before the 1st day of April, 1989, the assessee may, at his option, before the due date for furnishing the return of his income under sub-section (1) of Section 139 for the assessment year commencing on the 1st day of April, 1989, furnish to the Assessing Officer a declaration in writing that the provisions of sub-section (1) may be made applicable to him for any five consecutive assessment years falling within a period of eight years beginning with the assessment year commencing on the 1st day of April, 1989 and if he does so, then, the provisions of sub-section (1) shall apply to him for each of such assessment years and the provisions of sub-section (4) shall also apply in computing the total income of the assessee for the assessment year immediately succeeding the last of such assessment years and any subsequent assessment year.

(6) The provisions of sub-section (8) and sub-section (9) of Section 80-I shall, so far as may be, apply in relation to the undertaking referred to in this section as they apply for the purposes of the industrial undertaking referred to in Section 80-I.

(7) Notwithstanding anything contained in the foregoing provisions of this section, where the assessee, before the due date for furnishing the return of his income under sub-section (1) of Section 139, furnishes to the Assessing Officer a declaration in writing that the provisions of this section may not be made applicable to him, the provisions of this section shall not apply to him for any of the relevant assessment years.

Explanation. For the purposes of this section,

(i) hundred per cent. export-oriented undertaking means an undertaking which has been approved as a hundred per cent. export-oriented undertaking by the Board appointed in this behalf by the Central Government in exercise of the powers conferred by Section 14 of the Industries (Development and Regulation) Act, 1951 (65 of 1951), and the rules made under that Act;

(ii) relevant assessment years means the five consecutive assessment years specified by the assessee at his option under sub-section (3) or sub-section (5), as the case may be;

(iii) manufacture includes any

(a) process, or

(b) assembling, or

(c) recording of programmes on any disc, tape, perforated media or other information storage device. .

In Section 13-A of the Income-tax Act, the words Interest on securities , shall be omitted with effect from the 1st day of April, 1989.

In Section 14 of the Income-tax Act, the letter and words B. Interest on securities. shall be omitted with effect from the 1st day of April, 1989.

In Section 16 of the Income-tax Act, in clause (i), for the portion beginning with the words a sum equal to and ending with the words whichever is less , the following shall be substituted with effect from the 1st day of April, 1989, namely:

a sum equal to thirty-three and one-third per cent. of the salary or twelve thousand rupees, whichever is less .

Sections 18 to 21 of the Income-tax Act and the sub-heading B. Interest on securities above Section 18 shall be omitted with effect from the 1st day of April, 1989.

In Section 40 of the Income-tax Act, with effect from the 1st day of April, 1989,

(i) in clause (a), for sub-clause (i), the following sub-clause shall be substituted, namely:

(i) any interest (not being interest on a loan issued for public subscription before the 1st day of April, 1938), royalty, fees for technical services or other sum chargeable under this Act, which is payable outside India, on which tax has not been paid or deducted under Chapter XVII-B:

Provided that where in respect of any such sum, tax has been paid or deducted under Chapter XVII-B in any subsequent year, such sum shall be allowed as deduction in computing the income of the previous year in which such tax has been paid or deducted.

Explanation. For the purposes of this sub-clause,

(A) royalty shall have the same meaning as in Explanation 2 to clause (vi) of sub-section (1) of Section 9;

(B) fees for technical services shall have the same meaning as in Explanation 2 to clause (vii) of sub-section (1) of Section 9; ;

(ii) clause (d) shall be omitted.

In Section 43-B of the Income-tax Act [as amended by Section 15 of the Direct Tax Laws (Amendment) Act, 1987 (4 of 1988)], with effect from the 1st day of April, 1989,

(i) for clause (a), the following clause shall be substituted, namely:

(a) any sum payable by the assessee by way of tax, duty, cess or fee, by whatever name called, under any law for the time being in force, or ;

(ii) in clause (c), the word or shall be inserted at the end;

(iii) after clause (c), the following clause shall be inserted, namely:

(d) any sum payable by the assessee as interest on any loan or borrowing from any public financial institution, in accordance with the terms and conditions of the agreement governing such loan or borrowing. ;

(iv) in the first proviso, after the word, brackets and letter clause (c) , the words, brackets and letter or clause (d) shall be inserted;

(v) in Explanation 2, after the word, brackets and letter clause (c) the words, brackets and letter or clause (d) shall be inserted;

(vi) after Explanation 2, the following Explanation shall be inserted, namely:

Explanation 3. For the purposes of this section, the expression public financial institution shall have the meaning assigned to it in Section 4-A of the Companies Act, 1956. .

After Section 43-B of the Income-tax Act, the following section shall be inserted, namely:

43-C. Special provision for computation of cost of acquisition of certain assets. (1) Where an asset [not being an asset referred to in sub-section (2) of Section 45] which becomes the property of an amalgamated company under a scheme of amalgamation, is sold after the 29th day of February, 1988, by the amalgamated company as stock-in-trade of the business carried on by it, the cost of acquisition of the said asset to the amalgamated company in computing the profits and gains from the sale of such asset shall be the cost of acquisition of the said asset to the amalgamating company, as increased by the cost, if any, of any improvement made thereto, and the expenditure, if any, incurred, wholly and exclusively in connection with such transfer by the amalgamating company.

(2) Where an asset [not being an asset referred to in sub-section (2) of Section 45] which becomes the property of the assessee on the total or partial partition of a Hindu undivided family or under a gift or will or an irrevocable trust, is sold after the 29th day of February, 1988, by the assessee as stock-in-trade of the business carried on by him, the cost of acquisition of the said asset to the assessee in computing the profits and gains from the sale of such asset shall be the cost of acquisition of the said asset to the transferor or the donor, as the case may be, as increased by the cost, if any, of any improvement made thereto, and the expenditure, if any, incurred, wholly and exclusively in connection with such transfer (by way of effecting the partition, acceptance of the gift, obtaining probate in respect of the will or the creation of the trust), including the payment of gift-tax, if any, incurred by the transferor or the donor, as the case may be. .

In Section 44-AB of the Income-tax Act, with effect from the 1st day of April, 1989,

(a) in clauses (a) and (b), the words, figures and letters or years relevant to the assessment year commencing on the 1st day of April, 1985, or any subsequent assessment year shall be omitted;

(b) for the words such previous year or years , the words such previous year shall be substituted;

(c) in the Explanation, for clause (ii), the following clause shall be substituted, namely:

(ii) specified date , in relation to the accounts of the previous year relevant to an assessment year means,

(a) where the assessee is a company, the 31st day of December of the assessment year;

(b) in any other case, the 31st day of October of the assessment year. .

After Section 44-AB of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 1989, namely:

44-AC. Special provision for computing profits and gains from the business of trading in certain goods. (1) Notwithstanding anything to the contrary contained in Sections 28 to 43-C, in the case of an assessee, being a person other than a public sector company hereinafter in this section referred to as the buyer) obtaining in any sale by way of auction, tender or any other mode, conducted by any other person or his agent (hereafter in this section referred to as the seller),

(a) any goods in the nature of alcoholic liquor for human consumption (other than Indian-made foreign liquor), a sum equal to forty per cent. of the amount paid or payable by the buyer as the purchase price in respect of such goods shall be deemed to be the profits and gains of the buyer from the business of trading in such goods chargeable to tax under the head Profits and gains of business or profession ;

(b) the right to receive any goods of the nature specified in column (2) of the Table below, or such goods, as the case may be, a sum equal to the percentage, specified in the corresponding entry in column (3) of the said Table, of the amount paid or payable by the buyer in respect of the sale of such right or as the purchase price in respect of such goods shall be deemed to be the profits and gains of the buyer from the business of trading in such goods chargeable to tax under the head Profits and gains of business or profession .

Table

(2) For the removal of doubts, it is hereby declared that the provisions of sub-section (1) shall not apply to a buyer (other than a buyer who obtains any goods from any seller which is a public sector company) in the further sale of any goods obtained under or in pursuance of the sale under sub-section (1).

(3) In a case where the business carried on by the assessee does not consist exclusively of trading in goods to which this section applies and where separate accounts are not maintained or are not available, the amount of expenses attributable to such other business shall be an amount which bears to the total expenses of the business carried on by the assessee the same proportion as the turnover of such other business bears to the total turnover of the business carried on by the assessee.

Explanation. For the purposes of this section, seller means the Central Government, a State Government or any local authority or corporation or authority established by or under a Central, State or Provincial Act, or any company or firm. .

In Section 44-BB of the Income-tax Act, in sub-section (1), in the opening paragraph, for the words in the case of an assessee , the words in the case of an assessee, being a non-resident, shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 1983.

In Section 47 of the Income-tax Act, after clause (v), the following proviso shall be inserted, namely:

Provided that nothing contained in clause (iv) or clause (v) shall apply to the transfer of a capital asset made after the 29th day of February, as stock-in-trade. .

In Section 56 of the Income-tax Act, in sub-section (2), after clause (i-c) (as inserted by Section 26 of the Finance Act, 1987 (11 of 1987), the following clause shall be inserted with effect from the 1st day of April, 1989, namely:

(i-d) income by way of interest on securities, if the income is not chargeable to income-tax under the head Profits and gains of business or profession ; .

In Section 57 of the Income-tax Act, with effect from the 1st day of April, 1989,

(a) in clause (i),

(1) after the word dividends , the words or interest on securities shall be inserted;

(2) after the words such dividend , the words or interest shall be inserted;

(b) the Explanation shall be omitted.

In Section 58 of the Income-tax Act, in sub-section (1) with effect from the 1st day of April, 1989,

(a) in clause (a), in sub-clause (ii), the words and figures and in respect of which there is no person in India who may be treated as an agent under Section 163 shall be omitted;

(b) clause (b) shall be omitted.

In Section 79 of the Income-tax Act, with effect from the 1st day of April, 1989,

(a) in clause (a),

(i) the word or occurring at the end shall be omitted;

(ii) the following proviso shall be added at the end, namely:

Provided that nothing contained in this section shall apply to a case where a change in the said voting power takes place in a previous year consequent upon the death of a shareholder or on account of transfer of shares by way of gift to any relative of the shareholder making such gift. ;.

(b) clause (b) shall be omitted.

In Section 80-CC of the Income-tax Act, in sub-section (1), after the words eligible issue of capital, , the words, brackets, figures and letter or units of any Mutual Fund specified under clause (23-D) of Section 10 if such Fund subscribes only to eligible issue of capital, shall be inserted with effect from the 1st day of April, 1989.

For Section 80-CCA of the Income-tax Act (as inserted by Section 34 of the Finance Act, 1987 (11 of 1987)), the following section shall be substituted, namely:

80-CCA. Deduction in respect of deposits under National Savings Scheme or payment to an annuity plan. (1) Where an assessee, being

(a) an individual, or

(b) a Hindu undivided family, or

(c) an association of persons or a body of individuals consisting, in either case, only of husband and wife governed by the system of community of property in force in the State of Goa and the Union Territories of Dadra and Nagar Haveli and Daman and Diu,

has in the previous year

(i) deposited any amount in accordance with such scheme as the Central Government may, by notification in the Official Gazette, specify in this behalf (hereafter in this section referred to as the National Savings Scheme); or

(ii) paid any amount to effect or to keep in force a contract for such annuity plan of the Life Insurance Corporation as the Central Government may, by notification in the Official Gazette, specify,

out of his income chargeable to tax, he shall, in accordance with, and subject to, the provisions of this section, be allowed a deduction in the computation of his total income of the whole of the amount deposited or paid (excluding interest or bonus accrued or credited to the assessee's account, if any) as does not exceed the amount of twenty thousand rupees in the previous year:

Provided that in relation to the assessment year commencing on the 1st day of April, 1989 and subsequent assessment years, this sub-section shall have effect as if for the words twenty thousand rupees , the words thirty thousand rupees had been substituted.

(2) Where any amount

(a) standing to the credit of the assessee under the National Savings Scheme in respect of which a deduction has been allowed under sub-section (1) together with the interest accrued on such amount is withdrawn in whole or part in any previous year, or

(b) is received on account of the surrender of the policy or as annuity or bonus in accordance with the annuity plan of the Life Insurance Corporation in any previous year,

an amount equal to the whole of the amount referred to in clause (a) or clause (b) shall be deemed to be the income of the assessee of that previous year in which such withdrawal is made or, as the case may be, amount is received, and shall, accordingly, be chargeable to tax as the income of that previous year.

Explanation I. For the removal of doubts, it is hereby declared that interest on the deposits made under the National Savings Scheme shall not be chargeable to tax except in the manner and to the extent specified in sub-section (2).

Explanation II. For the purposes of this section, Life Insurance Corporation shall have the same meaning as in clause (a) of sub-section (8) of Section 80-C. .

In Section 80-HHC of the Income-tax Act, with effect from the 1st day of April, 1989,

(a) for sub-section (1), the following sub-sections shall be substituted, namely:

(1) Where an assessee, being an Indian company or a person (other than a company) resident in India, is engaged in the business of export out of India of any goods or merchandise to which this section applies, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction of the whole of the income derived by the assessee from the export of such goods or merchandise:

Provided that if the assessee, being a holder of an Export House Certificate or a Trading House Certificate, (hereinafter in this section referred to as an Export House or a Trading House, as the case may be,) issues a certificate referred to in clause (b) of sub-section (4-A), that in respect of the amount of the export turnover specified therein, the deduction under this sub-section is to be allowed to a supporting manufacturer, then the amount of deduction in the case of the assessee shall be reduced by such amount which bears to the total profits of the export business of the assessee the same proportion as the amount of export turnover specified in the said certificate bears to the total export turnover of the assessee.

(1-A) Where the assessee, being a supporting manufacturer, has during the previous year, sold goods or merchandise to any Export House or Trading House in respect of which the Export House or Trading House has issued a certificate under the proviso to sub-section (1), there shall, in accordance with and subject to the provisions of this section, be allowed in computing the total income of the assessee, a deduction of the whole of the income derived by the assessee from the sale of goods or merchandise to the Export House or Trading House in respect of which the certificate has been issued by the Export House or Trading House. ;

(b) after sub-section (3), the following sub-section shall be inserted, namely:

(3-A) For the purposes of sub-section (1-A), profits derived by a supporting manufacturer from the sale of goods or merchandise shall be,

(a) in a case where the business carried on by the supporting manufacturer consists exclusively of sale of goods or merchandise to one or more Export Houses or Trading Houses, the profits of the business as computed under the head Profits and gains of business or profession ;

(b) in a case where the business carried on by the supporting manufacturer does not consist exclusively of sale of goods or merchandise to one or more Export Houses or Trading Houses, the amount which bears to the profits of the business (as computed under the head Profits and gains of business or profession) the same proportion as the turnover in respect of sale to the respective Export House or Trading in respect of sale to the respective Export House or Trading House bears to the total turnover of the business carried on by the assessee. ;

(c) after sub-section (4), the following sub-section shall be inserted, namely:

(4-A) The deduction under sub-section (1-A) shall not be admissible unless the supporting manufacturer furnishes in the prescribed form along with his return of income,

(a) the report of an accountant, as defined in the Explanation below sub-section (2) of Section 288, certifying that the deduction has been correctly claimed on the basis of the income of the supporting manufacturer in respect of his sale of goods or merchandise to the Export House or Trading House; and

(b) a certificate from the Export House or Trading House containing such particulars as may be prescribed and verified in the manner prescribed that in respect of the export turnover mentioned in the certificate, the Export House or Trading House has not claimed the deduction under this section:

Provided that the certificate specified in clause (b) shall be duly certified by the auditor auditing the accounts of the Export House or Trading House under the provisions of this Act or under any other law. ;

(d) in the Explanation, after clause (c), the following clauses shall be inserted, namely:

(d) Export House Certificate or Trading House Certificate means a valid Export House Certificate or Trading House Certificate, as the case may be, issued by the Chief Controller of Imports and Exports, Government of India;

(e) supporting manufacturer means a person being an Indian company or a person (other than a company) resident in India, manufacturing goods or merchandise and selling such goods or merchandise to an Export House or a Trading House for the purposes of export. .

In Section 80-L of the Income-tax Act, in sub-section (1), with effect from the 1st day of April, 1989,

(a) after clause (iii), the following clause shall be inserted, namely:

(iii-a) interest on deposits under the Post Office (Monthly Income Account) Rules, 1987; ;

(b) in clause (vii),

(i) in the opening paragraph, the words or with a public company formed and registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes shall be omitted;

(ii) in the proviso, the words or, as the case may be, the company shall be omitted;

(c) after clause (ix), the following clause shall be inserted, namely:

(x) interest on deposits with, or dividend received from, any public company formed and registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes:

Provided that the company is for the time being approved by the Central Government for the purposes of clause (viii) of sub-section (1) of Section 36, ;

(d) for the first and second provisos, the following provisos shall be substituted, namely:

Provided that where the gross total income of the assessee includes any income by way of interest on any deposits referred to in clause (ii-a), or income in respect of units referred to in clause (v) or clause (v-a), or income by way of interest or dividend referred to in clause (x), there shall be allowed in computing the total income of the assessee, a further deduction of an amount equal to so much of such income as has not been allowed by way of deduction under the foregoing provisions of this sub-section; so, however, that the amount of such further deduction shall not exceed three thousand rupees:

Provided further that where any income by way of interest on any deposits referred to in clause (ii-a) or any dividends referred to in clause (iv) remains unallowed after the deduction under the foregoing provisions of this section, there shall be allowed in computing the total income of the assessee, an additional deduction of an amount equal to so much of such income as has remained unallowed; so, however, that the amount of such additional deduction shall not exceed three thousand rupees. .

In Section 80-O of the Income-tax Act (as amended by Section 36 of the Finance Act, 1987 (11 of 1987),

(a) in the opening paragraph,

(i) for the words under an agreement approved by the Board in this behalf , the words under an agreement approved in this behalf by the Chief Commissioner or the Director General shall be substituted with effect from the 1st day of April, 1989;

(ii) for the portion beginning with the words and such income is received in convertible foreign exchange and ending with the words in computing the total income of the assessee , the following shall be substituted, namely:

and such income is received in convertible foreign exchange in India, or having been received in convertible foreign exchange outside India, or having been converted into convertible foreign exchange outside India, is brought into India, by or on behalf of the assessee in accordance with any law for the time being in force for regulating payments and dealings in foreign exchange, there shall be allowed, in accordance with and subject to the provisions of this section, a deduction of an amount equal to fifty per cent. of the income so received in, or brought into, India, in computing the total income of the assessee ;

(b) for the first and second provisos, the following provisos shall be substituted with effect from the 1st day of April, 1989, namely:

Provided that the application for the approval of the agreement referred to in this section is made to the Chief Commissioner or, as the case may be, the Director General in the prescribed form and verified in the prescribed manner before the 1st day of October of the assessment year in relation to which the approval is first sought:

Provided further that the approval of the Chief Commissioner or, as the case may be, the Director General shall not be necessary in the case of any such agreement which has been approved for the purposes of the deduction under this section by the Central Government before the 1st day of April, 1972, or by the Board before the 1st day of April, 1989, and every application for such approval of any such agreement pending with the Board immediately before the 1st day of April, 1989 shall stand transferred to the Chief Commissioner or the Director General for disposal: .

In Section 80-P of the Income-tax Act, in sub-section (2), in clause (f), the words and figures chargeable under Section 18 shall be omitted with effect from the 1st day of April, 1989.

Section 86-A of the Income-tax Act shall be omitted with effect from the 1st day of April, 1989.

In Section 89 of the Income-tax Act, sub-section (2) shall be omitted with effect from the 1st day of April, 1989.

Section 112-A of the Income-tax Act shall be omitted with effect from the 1st day of April, 1989.

Section 115-B of the Income-tax Act shall be renumbered as sub-section (1) thereof, and after sub-section (1) as so renumbered, the following sub-section shall be inserted with effect from the 1st day of April, 1989, namely:

(2) Notwithstanding anything contained in sub-section (1) or in any other law for the time being in force or any instrument having the force of law, the assessee shall, in addition to the payment of income-tax computed under sub-section (1), deposit, during the previous year relevant to the assessment year commencing on the 1st day of April, 1989, an amount equal to thirty-three and one-third per cent. of the amount of income-tax computed under clause (i) of sub-section (1), in such social security fund (hereafter in this sub-section referred to as the security fund), as the Central Government may, by notification in the Official Gazette, specify in this behalf:

Provided that where the assessee makes during the said previous year any deposit of an amount of not less than two and one half per cent. of the profits and gains of the life insurance business in the security fund, the amount of income-tax payable by the assessee under the said clause (i) shall be reduced by an amount equal to two and one-half per cent. of such profits and gains and, accordingly, the deposit of thirty-three and one-third per cent. required to be made under this sub-section shall be calculated on the income-tax as so reduced. .

In Section 115-F of the Income-tax Act, in sub-section (1), with effect from the 1st day of April, 1989,

(a) in the opening portion,

(i) the words or deposited shall be omitted;

(ii) the words, brackets, figure and letter or in an account referred to in clause (4-A), shall be omitted;

(iii) the words or such deposit in the account aforesaid shall be omitted;

(b) in the Explanation, in clause (i), the words, brackets, figures and letter referred to in clause (4-A) of Section 10 or shall be omitted.

In Section 131 of the Income-tax Act, with effect from the 1st day of June, 1988,

(a) in sub-section (1-A), for the words If the Assistant Director of Inspection , the words, brackets and figures If the Director General or Director or Deputy Director or Assistant Director, or the authorised officer referred to in sub-section (1) of Section 132 before he takes action under clauses (i) to (v) of that sub-section, shall be substituted;

(b) in sub-section (3), in the proviso, in clause (b) [as amended by Section 2 of the Direct Tax Laws (Amendment) Act, 1987 (4 of 1988)], for the words the Chief Commissioner or Commissioner therefor , the words the Chief Commissioner or Director General or Commissioner or Director therefor, as the case may be shall be substituted.

In Section 132 of the Income-tax Act, with effect from the 1st day of April, 1989,

(a) in sub-section (1), after the proviso, the following proviso shall be inserted, namely:

Provided further that where it is not possible or practicable to take physical possession of any valuable article or thing and remove it to a safe place due to its volume, weight or other physical characteristics or due to its being of a dangerous nature, the authorised officer may serve an order on the owner or the person who is in immediate possession or control thereof that he shall not remove, part with or otherwise deal with it, except with the previous permission of such authorised officer and such action of the authorised officer shall be deemed to be seizure of such valuable article or thing under clause (iii). ;

(b) in sub-section (3), after the words other valuable article or thing , the words, brackets and figure for reasons other than those mentioned in the second proviso to sub-section (1), shall be inserted.

In Section 139 of the Income-tax Act, with effect from the 1st day of April, 1989,

(a) in sub-section (6-A), after the words require him to furnish , the words, figures and letters the report of any audit obtained under Section 44-AB, the shall be inserted;

(b) in the Explanation below sub-section (9), after clause (b), the following clause shall be inserted, namely:

(bb) the return is accompanied by the report of the audit obtained under Section 44-AB; .

Section 181 of the Income-tax Act, and the sub-heading O. Liability of State Governments above that section shall be omitted with effect from the 1st day of April, 1989.

In Section 193 of the Income-tax Act, with effect from the 1st day of April, 1989,

(a) in the opening paragraph, for the words chargeable under the head Interest on securities , the words by way of interest on securities shall be substituted;

(b) in the proviso, clause (ii) shall be omitted.

In Section 194-C of the Income-tax Act, after sub-section (2), the following Explanation shall be inserted with effect from the 1st day of June, 1988, namely:

Explanation. For the purposes of this section, where any sum referred to in sub-section (1) or sub-section (2) is credited to any account, whether called, Suspense account or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly. .

In Section 195 of the Income-tax Act, in sub-section (2), for the words in the prescribed manner , the words by general or special order shall be substituted and shall be deemed to have been substituted with effect from the 1st day of March, 1988.

After Section 206-B of the Income-tax Act, the following sub-heading and section shall be inserted with effect from the 1st day of June, 1988, namely:

BB. Collection at source

206-C. Profits and gains from the business of trading in alcoholic liquor, forest produce, etc. (1) Every person, being a seller referred to in Section 44-AC, shall, at the time of debiting of the amount payable by the buyer referred to in that section to the account of the buyer or at the time of receipt of such amount from the said buyer in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, collect from the buyer of any goods of the nature specified in column (2) of the Table below, a sum equal to the percentage specified in the corresponding entry in column (3) of the said Table, of such amount as income-tax on income comprised therein.

Table

Provided that where the Assessing Officer, on an application made by the buyer, gives a certificate in the prescribed form that to the best of his belief any of the goods referred to in the aforesaid Table are to be utilised for the purposes of manufacturing, processing or producing articles or things and not for trading purposes, the provisions of this sub-section shall not apply so long as the certificate is in force.

(2) The power to recover tax by collection under sub-section (1) shall be without prejudice to any other mode of recovery.

(3) Any person collecting any amount under sub-section (1) shall pay within seven days the amount so collected to the credit of the Central Government or as the Board directs.

(4) Any amount collected in accordance with the provisions of this section and paid under sub-section (3) shall be deemed as payment of tax on behalf of the person from whom the amount has been collected and credit shall be given to him for the amount so collected on the production of the certificate furnished under sub-section (5) in the assessment made under this Act for the assessment year for which such income is assessable.

(5) Every person collecting tax in accordance with the provisions of this section shall within ten days from the date of debit or receipt of the amount furnish to the buyer to whose account such amount is debited or from whom such payment is received, a certificate to the effect that tax has been collected, and specifying the sum so collected, the rate at which the tax has been collected and such other particulars as may be prescribed.

(6) Any person responsible for collecting the tax who fails to collect the tax in accordance with the provisions of this section, shall, notwithstanding such failure, be liable to pay the tax to the credit of the Central Government in accordance with the provisions of sub-section (3).

(7) Without prejudice to the provisions of sub-section (6), if the seller does not collect the tax or after collecting the tax fails to pay it as required under this section, he shall be liable to pay simple interest at the rate of two per cent. per month or part thereof on the amount of such tax from the date on which such tax was collectable to the date on which the tax was actually paid.

(8) Where the tax has not been paid as aforesaid, after it is collected, the amount of the tax together with the amount of simple interest thereon referred to in sub-section (7) shall be a charge upon all the assets of the seller. .

In Section 230-A of the Income-tax Act, in sub-section (1), for the words fifty thousand rupees , the words two lakh rupees shall be substituted.

After Section 245-D of the Income-tax Act, the following section shall be inserted, namely:

245-DD. Power of Settlement Commission to order provisional attachment to protect revenue. (1) Where, during the pendency of any proceeding before it, the Settlement Commission is of the opinion that for the purpose of protecting the interests of the revenue it is necessary so to do, it may, by order, attach provisionally any property belonging to the applicant in the manner provided in the Second Schedule:

Provided that where a provisional attachment made under Section 281-B is pending immediately before an application is made under Section 245-C, an order under this sub-section shall continue such provisional attachment up to the period up to which an order made under Section 281-B would have continued if such application had not been made:

Provided further that where the Settlement Commission passess an order under this sub-section after the expiry of the period referred to in the preceding proviso, the provisions of sub-section (2) shall apply to such order as if the said order had originally been passed by the Settlement Commission.

(2) Every provisional attachment made by the Settlement Commission under sub-section (1) shall cease to have effect after the expiry of a period of six months from the date of the order made under sub-section (1):

Provided that the Settlement Commission may, for reasons to be recorded in writing, extend the aforesaid period by such further period or periods as it thinks fit, so, however, that the total period of extension shall not in any case exceed two years. .

In Section 246 of the Income-tax Act,

(a) in sub-section (1), in clause (o), in sub-clause (iv-a), after the words, figures and letter Section 272-B , the words, figures and letters or Section 272-BB shall be inserted and shall be deemed to have been inserted with effect from the 1st day of June, 1987;

(b) in sub-section (2), in clause (a), the words, figures and letters or an order under Section 104, as it stood immediately before the 1st day of April, 1988, in respect of any assessment for the assessment year commencing on the 1st day of April, 1987 or any earlier assessment years, made against the assessee, being a company shall be inserted at the end.

In Section 263 of the Income-tax Act, in sub-section (1), for the Explanation, the following Explanation shall be substituted with effect from the 1st day of June, 1988, namely:

Explanation. For the removal of doubts, it is hereby declared that, for the purposes of this sub-section,

(a) an order passed by the Assessing Officer shall include

(i) an order of assessment made by the Assistant Commissioner or the Income-tax Officer on the basis of the directions issued by the Deputy Commissioner under Section 144-A;

(ii) an order made by the Deputy Commissioner in exercise of the powers or in the performance of the functions of an Assessing Officer conferred on, or assigned to, him under the orders or directions issued by the Board or by the Chief Commissioner or Director General or Commissioner authorised by the Board in this behalf under Section 120;

(b) record includes all records relating to any proceeding under this Act available at the time of examination by the Commissioner;

(c) where any order referred to in this sub-section and passed by the Assessing Officer had been the subject-matter of any appeal, the powers of the Commissioner under this section shall extend to such matters as had not been considered and decided in such appeal. .

In Section 271-B of the Income-tax Act, after the words, figures and letters or obtain a report of such audit as required under Section 44-AB , the words, brackets and figures or furnish the said report along with the return of his income filed under sub-section (1) of Section 139, or along with the return of income furnished in response to a notice under clause (i) of sub-section (1) of Section 142 shall be inserted with effect from the 1st day of April, 1989.

After Section 276-B of the Income-tax Act, the following section shall be inserted with effect from the 1st day of June, 1988, namely:

276-BB. Failure to pay the tax collected at source. If a person fails to pay to the credit of the Central Government, the tax collected by him as required under the provisions of Section 206-C, he shall be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to seven years and with fine. .

In Section 279 of the Income-tax Act, with effect from the 1st day of April, 1989,

(a) for sub-section (1), the following sub-section shall be substituted, namely:

(1) A person shall not be proceeded against for an offence under Section 275-A, Section 276, Section 276-A, Section 276-B, Section 276-BB, Section 276-C, Section 276-CC, Section 276-D, Section 277 or Section 278 except with the previous sanction of the Chief Commissioner or Director General or Commissioner:

Provided that no such sanction shall be required if the prosecution is at the instance of the Commissioner (Appeals) or the appropriate authority.

Explanation. For the purposes of this section, appropriate authority shall have the same meaning as in clause (c) of Section 269-UA. ;

(b) for sub-section (2), the following sub-section shall be substituted, namely:

(2) Any offence under this Chapter may, either before or after the institution of proceedings, be compounded by

(a) the Board or a Chief Commissioner or a Director General authorised by the Board in this behalf, in a case where the prosecution would lie at the instance of the Commissioner (Appeals) or the appropriate authority;

(b) the Chief Commissioner or Director General or Commissioner, in any other case. .

Chapter XXII-A of the Income-tax Act shall be omitted.

In Section 281-B of the Income-tax Act,

(a) in sub-section (1), the following Explanation shall be inserted at the end, namely:

Explanation. For the purposes of this sub-section, proceedings under sub-section (5) of Section 132 shall be deemed to be proceedings for the assessment of any income or for the assessment or reassessment of any income which has escaped assessment. ;

(b) in sub-section (2), after the first proviso, the following proviso shall be inserted, namely:

Provided further that where an application for settlement under Section 245-C is made, the period commencing from the date on which such application is made and ending with the date on which an order under sub-section (1) of Section 245-D is made shall be excluded from the period specified in the preceding proviso. .

Section 285-A of the Income-tax Act shall be omitted.

In Section 293 of the Income-tax Act, for the words any order made , the words any proceeding taken or order made shall be substituted and shall be deemed to have been substituted with effect from the 1st day of March, 1988.

In the First Schedule to the Income-tax Act, in Rule 5, clause (b) shall be omitted with effect from the 1st day of April, 1989.

In the Eleventh Schedule to the Income-tax Act, for Item 9, the following item shall be substituted with effect from the 1st day of April, 1989, namely:

9. Projectors. .

The following amendments (being amendments of a consequential nature) shall be made in the Income-tax Act, namely:

(i) in Section 2, in clause (24), sub-clause (viii) shall be omitted;

(ii) in Section 18, in sub-section (1), in clause (i), the words, figures and letters not being interest payable under Section 280-D in respect of any annuity deposit made under Chapter XXII-A shall be omitted;

(iii) in Section 29 [as amended by the Direct Tax Laws (Amendment) Act, 1987 (4 of 1988)], for the words, figures and letter Section 30 to 43-B , the words, figures and letter Sections 30 to 43-C shall be substituted;

(iv) in Section 33, in sub-section (2) and the Explanation thereunder, the words, figures and letter or Section 280-O shall be omitted;

(v) in Section 33-A, in sub-section (2) and the Explanation thereunder, the words, figures and letter or Section 280-O shall be omitted;

(vi) in Section 80-B, in clause (5), the words, figures and letter or under Section 280-O shall be omitted;

(vii) in Section 80-J, in sub-section (3), the words, figures and letter or Section 280-O shall be omitted;

(viii) in Section 80-L, in sub-section (1), in clause (i) the brackets, words, figures and letters (not being interest payable under Section 280-D in respect of any annuity deposit made under Chapter XXII-A) shall be omitted;

(ix) in Section 194-A, in sub-section (1), for the words chargeable under the head Interest on securities , the words by way of interest on securities shall be substituted with effect from the 1st day of April, 1989;

(x) in Section 253, in sub-section (1), in clause (c), the words, figures and letter or under Section 285-A shall be omitted.

In Section 5 of the Wealth-tax Act, 1957 (27 of 1957) (hereinafter referred to as the Wealth-tax Act),

(a) in sub-section (1),

(i) after clause (xvi-e) and the Explanation thereto, the following clause shall be inserted, namely:

(xvi-f) in the case of an individual or a Hindu undivided family, such Relief Bonds as the Central Government may, by notification in the Official Gazette, specify in this behalf; ;

(ii) for clause (xxx-a), the following clause shall be substituted with effect from the 1st day of April, 1989, namely:

(xxx-a) the value of one or more dwelling units (each having a plinth area of eighty square metres or less) belonging to the assessee and used solely for the purpose of residence of persons employed by the assessee in any plantation or industrial undertaking belonging to the assessee; ;

(b) in sub-section (1-A), with effect from the 1st day of April, 1989,

(i) in the opening paragraph, after the brackets and figures (xvi), , the brackets, figures and letter (xvi-e), shall be inserted;

(ii) after the first proviso, the following proviso shall be inserted, namely:

Provided further that nothing contained in this sub-section shall apply to any assets referred to in clause (xvi-e) which are sold by a public sector company before the 1st day of June, 1988. ;

(iii) in the second proviso, for the words Provided further that , the words Provided also that shall be substituted;

(c) in sub-section (3),

(i) in the opening portion, after the brackets, figures and letter (xvi-e), , the brackets, figures and letter (xvi-f), shall be inserted;

(ii) in clause (aa),

(1) after the word, brackets, figures and letter clause (xvi-e), , the words, brackets, figures and letter or Relief Bonds referred to in clause (xvi-f), shall be inserted;

(2) after the words Bonds or debentures , the words or Relief Bonds shall be inserted.

After Section 22-D of the Wealth-tax Act, the following section shall be inserted, namely:

22-DD. Power of Settlement Commission to order provisional attachment to protect revenue. (1) Where, during the pendency of any proceeding before it, the Settlement Commission is of the opinion that for the purpose of protecting the interests of the revenue it is necessary so to do, it may, by order, attach provisionally any property belonging to the applicant in the manner provided in the Second Schedule to the Income-tax Act as made applicable to this Act by Section 32:

Provided that where a provisional attachment made under Section 34-C is pending immediately before an application is made under Section 22-C, an order under this sub-section shall continue such provisional attachment up to the period up to which an order made under Section 34-C would have continued if such application had not been made:

Provided further that where the Settlement Commission passes an order under this sub-section after the expiry of the period referred to in the preceding proviso, the provisions of sub-section (2) shall apply to such order as if the said order had originally been passed by the Settlement Commission.

(2) Every provisional attachment made by the Settlement Commission under sub-section (1) shall cease to have effect after the expiry of a period of six months from the date of the order made under sub-section (1):

Provided that the Settlement Commission may, for reasons to be recorded in writing, extend the aforesaid period by such further period or periods as it thinks fit, so, however, that the total period of extension shall not in any case exceed two years. .

In Section 25 of the Wealth-tax Act, in sub-section (2), for the Explanation, the following Explanation shall be substituted with effect from the 1st day of June, 1988, namely:

Explanation. For the removal of doubts, it is hereby declared that, for the purposes of this sub-section,

(a) an order passed by the Assessing Officer shall include an order made by the Deputy Commissioner in exercise of the powers or in the performance of the functions of an Assessing Officer conferred on or assigned to him under orders or directions issued by the Board or by the Chief Commissioner or Director General or Commissioner authorised by the Board in this behalf under Section 120 of the Income-tax Act read with Section 8 of this Act;

(b) record includes all records relating to any proceeding under this Act available at the time of examination by the Commissioner;

(c) where any order referred to in this sub-section and passed by the Assessing Officer had been the subject-matter of any appeal, the powers of the Commissioner under this sub-section shall extend to such matters as had not been considered and decided in such appeal. .

In Section 34-AB of the Wealth-tax Act, in sub-sections (1) and (2), for the word Board , the words Chief Commissioner or Director General shall be substituted with effect from the 1st day of June, 1988.

In Section 34-ACC of the Wealth-tax Act, for the words to the Board , occurring at the end, the words to the Chief Commissioner or Director General shall be substituted with effect from the 1st day of June, 1988.

In Section 34-AD of the Wealth-tax Act, with effect from the 1st day of June, 1988,

(a) in sub-section (1),

(i) for the word Board , at both the places where it occurs, the words Chief Commissioner or Director General shall be substituted;

(ii) for the words it is satisfied , the words he is satisfied shall be substituted;

(iii) for the words it thinks fit , the words he thinks fit shall be substituted;

(b) in sub-section (2), for the word Board , the words Chief Commissioner or Director General shall be substituted;

(c) after sub-section (2), the following sub-sections shall be inserted, namely:

(3) Without prejudice to the provisions of sub-sections (1) and (2), the Chief Commissioner or Director General shall, once in three years, review the performance of all the registered valuers and may remove the name of any person from the Register of Valuers where he is satisfied, after giving that person a reasonable opportunity of being heard and after such further inquiry, if any, as he thinks fit to make, that his performance is such that his name should not remain on the Register of Valuers.

(4) The Chief Commissioner or Director General may himself conduct the inquiry referred to in sub-section (1) or sub-section (3) or appoint an Inquiry Officer not below the rank of a Commissioner to conduct such inquiry, and for the purposes of such inquiry, the Chief Commissioner or Director General and the Inquiry Officer so appointed shall have the same powers as are vested in a court under the Code of Civil Procedure, 1908 when trying a suit in respect of the following matters, namely:

(a) discovery and inspection;

(b) enforcing the attendance of any person including any officer of a banking company and examining him on oath;

(c) compelling the production of books of account and other documents;

(d) issuing commission. .

In Chapter VII-B of the Wealth-tax Act, after Section 34-AD, the following section shall be inserted with effect from the 1st day of June, 1988, namely:

34-AE. Existing registered valuers to apply afresh. (1) Notwithstanding anything contained in this Chapter, every person whose name is included in the Register of Valuers immediately before the 1st day of June, 1988, shall, if he intends to continue to be registered under this Act, make an application under sub-section (2) of Section 34-AB within a period of three months from that date, for being registered afresh as a valuer under this Chapter and the provisions of sub-section (3) of that section and the rules made thereunder shall be applicable in respect of the verification of the application, the fees that shall accompany such application and the declaration to be made by the applicant.

(2) The provisions of this Chapter regarding the registration of a person as a valuer and other matters shall, so far as may be, apply to every application made under sub-section (1).

(3) Every application pending before the Board immediately before the 1st day of June, 1988, shall be deemed to be an application received by the Chief Commissioner or Director General under sub-section (1). .

In Section 34-C of the Wealth-tax Act,

(a) in sub-section (1), the following Explanation shall be inserted at the end, namely:

Explanation. For the purposes of this sub-section, the proceedings under sub-section (5) of Section 37-A shall be deemed to be proceedings for the assessment of any net wealth or for the assessment or reassessment of any net wealth which has escaped assessment. ;

(b) in sub-section (2), after the first proviso, the following proviso shall be inserted, namely:

Provided further that where an application for settlement under Section 22-C is made, the period commencing from the date on which such application is made and ending with the date on which an order under sub-section (1) of Section 22-D is made shall be excluded from the period specified in the proceeding proviso. .

For Section 35-I of the Wealth-tax Act, the following section shall be substituted with effect from the 1st day of April, 1989, namely:

35-I. Prosecutions to be with the previous sanction of certain wealth-tax authorities and their power to compound offences. (1) A person shall not be proceeded against for an offence under this Act except with the previous sanction of the Chief Commissioner or Director General or Commissioner:

Provided that no such sanction shall be required if the prosecution is at the instance of the Commissioner (Appeals).

(2) Any such offence may, either before or after the institution of proceedings, be compounded by

(a) the Board or a Chief Commissioner or a Director General authorised by the Board in this behalf, in a case where the prosecution would lie at the instance of the Commissioner (Appeals);

(b) the Chief Commissioner or Director General or Commissioner, in any other case. .

In Section 37 of the Wealth-tax Act, with effect from the 1st day of June, 1988,

(a) after sub-section (1), the following sub-section shall be inserted, namely:

(1-A) If the Director General or Director or Deputy Director or Assistant Director, or the authorised officer referred to in sub-section (1) of Section 37-A before he takes action under clause (i) to (vi) of that sub-section, has reason to suspect that any net wealth has been concealed, or is likely to be concealed, by any person or class of persons within his jurisdiction, then, for the purposes of making any inquiry or investigation relating thereto, it shall be competent for him to exercise the powers conferred under sub-section (1) on the wealth-tax authorities referred to in that sub-section, notwithstanding that no proceedings with respect to such person or class of persons are pending before him or any other wealth-tax authority. ;

(b) in sub-section (3), in the proviso, in clause (b) [as amended by Section 127 of the Direct Tax Laws (Amendment) Act, 1987 (4 of 1988)], for the words the Chief Commissioner or Commissioner therefor , the words the Chief Commissioner or Director General or Commissioner or Director therefor, as the case may be, shall be substituted.

In Section 43 of the Wealth-tax Act, for the words any order made , the words any proceeding taken or order made shall be substituted and shall be deemed to have been substituted with effect from the 1st day of March, 1988.

In Schedule I to the Wealth-tax Act, in Part I, the following shall be added at the end, namely:

Surcharge on wealth-tax

The amount of wealth-tax computed in accordance with the provisions of this Part shall, in relation to the assessment year commencing on the 1st day of April, 1988, be increased by a surcharge calculated at the rate of ten per cent. of such wealth-tax. .

In Section 5 of the Gift-tax Act, 1958 (hereinafter referred to as the Gift-tax Act), in sub-section (1), after clause (iii-c), the following clause shall be inserted, namely:

(iii-d) being an individual or a Hindu undivided family, of property in the form of such Relief Bonds, as the Central Government may, by notification in the Official Gazette, specify in this behalf subject to a maximum of rupees five lakhs in value in the aggregate in one or more previous years:

Provided that the exemption conferred by this clause shall be available only to a person who has initially subscribed to the said Bonds; .

In Section 24 of the Gift-tax Act, in sub-section (2), for the Explanation, the following Explanation shall be substituted with effect from the 1st day of June, 1988, namely:

Explanation. For the removal of doubts, it is hereby declared that, for the purposes of this sub-section,

(a) an order passed by the Assessing Officer shall include an order passed by the Deputy Commissioner in exercise of the powers or in performance of the functions of an Assessing Officer conferred on or assigned to him under orders or directions issued by the Board or by the Chief Commissioner or Director General or Commissioner authorised by the Board in this behalf under Section 120 of the Income-tax Act read with Section 7 of this Act;

(b) record includes all records relating to any proceeding under this Act available at the time of examination by the Commissioner;

(c) where any order referred to in this sub-section and passed by the Assessing Officer had been the subject matter of any appeal, the powers of the Commissioner under this sub-section shall extend to such matters as had not been considered and decided in such appeal. .

In Section 35 of the Gift-tax Act, for sub-sections (3) and (4), the following sub-sections shall be substituted with effect from the 1st day of April, 1989, namely:

(3) A person shall not be proceeded against for an offence under this Act except with the previous sanction of the Chief Commissioner or Director General or Commissioner:

Provided that no such sanction shall be required if the prosecution is at the instance of the Commissioner (Appeals).

(4) Any such offence may, either before or after the institution of proceedings, be computed by

(a) the Board or a Chief Commissioner or a Director General authorised by the Board in this behalf, in a case where the prosecution would lie at the instance of the Commissioner (Appeals);

(b) the Chief Commissioner or Director General or Commissioner, in any other case. .

In Section 36 of the Gift-tax Act, after sub-section (1), the following sub-section shall be inserted with effect from the 1st day of June, 1988, namely:

(1-A) If the Director General or Director or Deputy Director or Assistant Director has reason to suspect that any gifts chargeable to tax under this Act have been concealed, or are likely to be concealed, by any person or class of persons within his jurisdiction, then, for the purposes of making any inquiry or investigation relating thereto, it shall be competent for him to exercise the powers conferred under sub-section (1) on the gift-tax authorities referred to in that sub-section, notwithstanding that no proceedings with respect to such person or class of persons are pending before him or any other gift-tax authority. .

In Section 42 of the Gift-tax Act, for the words any order made , the words any proceeding taken or order made shall be substituted and shall be deemed to have been substituted with effect from the 1st day of March, 1988.

In the Expenditure-tax Act, 1987 (35 of 1987) (hereinafter referred to as the Expenditure-tax Act), save as otherwise expressly provided herein, the reference to any authorities specified in column (1) of the Table below shall be substituted by references to the authority or authorities specified in the corresponding entries in column (2) of the said Table and such consequential changes, as the rules of grammar may require, shall also be made.

Table

Provided that nothing contained in this section shall apply to the reference to Commissioner occurring in Sections 21 and 23.

In Section 6 of the Expenditure-tax Act,

(a) for sub-section (1), the following sub-section shall be substituted, namely:

(1) Every Director General of Income-tax, Chief Commissioner of Income-tax, Director of Income-tax, Commissioner of Income-tax, Commissioner of Income-tax (Appeals), Deputy Director of Income-tax, Deputy Commissioner of Income-tax, Assistant Director of Income-tax, Assistant Commissioner of Income-tax, Income-tax Officer, Tax Recovery Officer and Inspector of Income-tax shall have the like powers and perform the like functions under this Act as he has and performs under the Income-tax Act, and for the exercise of his powers and the performance of his functions, his jurisdiction under this Act shall be the same as he has under the Income-tax Act. ;

(b) in sub-section (3), for the words Director of Inspection or by the Commissioner , the words Director General or Director or by the Chief Commissioner or Commissioner shall be substituted.

In Section 13 of the Expenditure-tax Act, in sub-section (3), for the words and figures the Commissioner, or, as the case may be, the order under Section 22 or Section 23 is received by the Commissioner , the words and figures the Commissioner, or the order is received by the Chief Commissioner or Commissioner, as the case may be, under Section 22 or Section 23 shall be substituted.

In Section 24 of the Expenditure-tax Act,

(a) for the figures, brackets, letters and words 2(43-B) and (44), 118, 125, 125-A, 128 to 136 (both inclusive) , the figures, brackets and words 2(44), 118, 120, 129, 131 to 136 (both inclusive) shall be substituted;

(b) the figures 231, shall be omitted.

INDIRECT TAXES

The Customs Tariff Act, 1975 (hereinafter referred to as the Customs Tariff Act), shall be amended in the manner specified in the Second Schedule.

(1) In the case of goods mentioned in the First Schedule to the Customs Tariff Act, or in that Schedule, as amended from time to time, there shall be levied and collected as an auxiliary duty of customs an amount equal to fifty per cent. of the value of the goods as determined in accordance with the provisions of Section 14 of the Customs Act, 1962 (52 of 1962) (hereinafter referred to as the Customs Act).

(2) Sub-section (1) shall cease to have effect after the 31st day of March, 1989, except as respects things done or omitted to be done before such cesser; and Section 6 of the General Clauses Act, 1897 (10 of 1897), shall apply upon such cesser as if the said sub-section had then been repealed by a Central Act.

(3) The auxiliary duties of customs referred to in sub-section (1) shall be in addition to any duties of customs chargeable on such goods under the Customs Act, or any other law for the time being in force.

(4) The provisions of the Customs Act and the rules and regulations made thereunder, including those relating to refunds and exemptions from duties, shall, as far as may be, apply in relation to the levy and collection of the auxiliary duties of customs leviable under this section in respect of any goods as they apply in relation to the levy and collection of the duties of customs on such goods under that Act or those rules and regulations, as the case may be.

In Section 27 of the Customs Act, after sub-section (4), the following sub-section shall be inserted, namely:

(5) Notwithstanding anything contained in any other law, the provisions of this section shall also apply to a claim for refund of any amount collected as duty of customs made on the ground that the goods in respect of which such amount was collected were not leviable to such duty or were entitled to exemption from duty and no court shall have any jurisdiction in respect of such claim. .

In Section 115 of the Customs Act, in sub-section (2), in the opening paragraph, the words and that each of them had taken all such precautions against such use as are for the time being specified in the rules shall be omitted.

In Section 156 of the Customs Act, in sub-section (2), clause (c) shall be omitted.

The Central Excise Tariff Act, 1985 (hereinafter referred to as the Central Excise Tariff Act), shall be amended in the manner specified in the Third Schedule.

(1) In the case of goods chargeable with a duty of excise under the Central Excises and Salt Act, 1944 (1 of 1944) (hereinafter referred to as the Central Excises Act), as amended from time to time, read with any notification for the time being in force issued by the Central Government in relation to the duty so chargeable (not being a notification providing for any exemption for giving credit with respect to, or reduction of duty of excise under the said Act on such goods equal to, any duty of excise under the said Act, or the additional duty under Section 3 of the Customs Tariff Act, already paid on the raw material or competent parts used in the production or manufacture of such goods), there shall be levied and collected a special duty of excise equal to five per cent. of the amount so chargeable on such goods.

(2) Sub-section (1) shall cease to have effect after the 31st day of March, 1989, except as respects things done or omitted to be done before such cesser; and Section 6 of the General Clauses Act, 1897 (10 of 1897), shall apply upon such cesser as if the said sub-section had then been repealed by a Central Act.

(3) The special duties of excise referred to in sub-section (1) shall be in addition to any duties of excise chargeable on such goods under the Central Excises Act, or any other law for the time being in force.

(4) The provisions of the Central Excises Act and the rules made thereunder, including those relating to refunds and exemptions from duties, shall, as far as may be, apply in relation to the levy and collection of the special duties of excise leviable under this section in respect of any goods as they apply in relation to the levy and collection of the duties of excise on such goods under that Act or those rules, as the case may be.

The Additional Duties of Excise (Goods of Special Importance) Act, 1957 (hereinafter referred to as the Additional Duties of Excise Act), shall be amended in the manner specified in the Fourth Schedule.

(1) The notification of the Government of India in the Ministry of Finance (Department of Revenue) No. G.S.R. 97(E), dated the 23rd day of February, 1988, which was issued in exercise of the powers conferred by sub-rule (1) of Rule 8 of the Central Excise Rules, 1944, read with sub-section (3) of Section 3 of the Additional Duties of Excise Act, providing for withdrawal of exemptions from additional duty of excise in relation to certain varieties of sugar (hereafter in this section referred to as sugar), shall be deemed to have, and to have always had, effect on and from the 10th day of September, 1986.

(2) Any action or thing taken or done or purported to have been taken or done on or after the 10th day of September, 1986 and before the 23rd day of February, 1988, in relation to sugar under the Additional Duties of Excise Act, shall be deemed to be, and to have always been, for all purposes as validly and effectively taken or done as if the provisions of sub-section (1) had been in force at all material times and such action or thing had been taken or done under the Additional Duties of Excise Act read with the notification dated the 23rd day of February, 1988, referred to in sub-section (1), and, accordingly, notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority,

(a) all additional duties of excise levied, assessed or collected or purporting to have been levied, assessed or collected on or after the 10th day of September, 1986 and before the 23rd day of February, 1988, on sugar, shall be deemed to be, and shall be deemed to have always been, as validly levied, assessed or collected as if the provisions of this section had been in force at all material times;

(b) no suit or other proceeding shall be maintained or continued in any court, tribunal or other authority, for the refund of, and no enforcement shall be made by any court, tribunal or other authority, of any decree or order directing the refund of, any such additional duties of excise which have been collected and which would have been validly collected if the provisions of this section had been in force at all material times;

(c) recovery shall be made of all such additional duties of excise which have not been collected or, as the case may be, which have been refunded but which would have been collected or, as the case may be, would not have been refunded, if the provisions of this section had been in force at all material times.

Explanation. For the removal of doubts, it is hereby declared that no act or omission on the part of any person shall be punishable as an offence which would not have been so punishable if this section had not come into force.

MISCELLANEOUS

In Section 14 of the Central Sales Tax Act, 1956,

(a) for item (ii-a), the following item shall be substituted, namely:

(ii-a) cotton fabrics covered under heading Nos. 52.05, 52.06, 52.07, 52.08, 52.09, 52.10, 52.11, 52.12, 58.01, 58.02, 58.03, 58.04, 58.05, 59.01, 59.03, 59.05, 59.06 and 60.01 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986); ;

(b) for items (vii), (viii), (ix) and (x), the following items shall be substituted, namely:

(vii) man-made fabrics covered under heading Nos. 54.08, 54.09, 54.10, 54.11, 54.12, 55.07, 55.08, 55.09, 55.10, 55.11, 55.12, 58.01, 58.02, 58.03, 58.04, 58.05, 59.01, 59.02, 59.03, 59.05, 59.06 and 60.01 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986);

(viii) sugar covered under sub-heading Nos. 1701.20, 1701.31, 1701.39 and 1702.11 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986);

(ix) unmanufactured tobacco and tobacco refuse covered under sub-heading No. 2401.00 cigars and cheroots of tobacco covered under heading No. 24.02, cigarettes and cigarillos of tobacco covered under sub-heading Nos. 2403.11 and 2403.21, and other manufactured tobacco covered under sub-heading Nos. 2404.11, 2404.12, 2404.13, 2404.19, 2404.21, 2404.29, 2404.31, 2404.39, 2404.41 and 2404.50, of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986);

(x) woven fabrics of wool covered under heading Nos. 51.06, 51.07, 58.01, 58.02, 58.03 and 58.05 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986). .

After Section 35 of the General Insurance Business (Nationalisation) Act, 1972, the following section shall be inserted with effect from the 1st day of June, 1988, namely:

35-A. Deduction of income-tax not to be made on interest or dividend payable to the Corporation, etc. Notwithstanding anything contained in Section 193 or Section 194 of the Income-tax Act, 1961 (43 of 1961), no deduction of income-tax shall be made on any interest or dividend payable to the Corporation or to any of the four new companies formed by virtue of the schemes framed under sub-section (1) of Section 16, in respect of any securities or shares owned by the Corporation or such company or in which the Corporation or such company has full beneficial interest. .

In Section 40 of the Finance Act, 1983,

(i) in sub-section (1), before the Explanation, the following proviso shall be inserted, namely:

Provided that the amount of wealth-tax computed in accordance with the provisions of this sub-section shall, in relation to the assessment year commencing on the 1st day of April, 1988, be increased by a surcharge calculated at the rate of ten per cent. of such wealth-tax. ;

(ii) in sub-section (3), with effect from the 1st day of April, 1989,

(a) in clause (i), the words , not being any such precious metal or alloy held for use as raw material in industrial production shall be inserted at the end;

(b) to clause (v), the following proviso shall be added, namely:

Provided that nothing in this clause shall apply to any unused land held by the assessee for industrial purposes for a period of two years from the date of its acquisition by him; ;

(c) for clause (vi), the following clauses shall be substituted, namely:

(vi) building or land appurtenant thereto, other than building or part thereof used by the assessee as factory, godown, warehouse, cinema house, hotel or office for the purposes of its business or as a hospital, creche, school, canteen, library, recreational centre, shelter, rest-room or lunch room mainly used for the welfare of its employees or used as residential accommodation, except as provided in clauses (vi-a) and (vi-b), and the land appurtenant to such building or part;

(vi-a) any building used as residential accommodation in the nature of a guest house and land appurtenant thereto;

(vi-b) any building and the land appurtenant to such building used as residential accommodation by any director, manager, secretary or any other employee of the assessee such employee holding not less than one per cent. of the equity share of the assessee or by any relative of any person who holds not less than one per cent. of the equity share of the assessee.

Explanation. For the purposes of this clause, relative shall have the meaning assigned to it in clause (b) of Explanation 1 to Section 80-F of the Income-tax Act. ;

(d) after clause (viii), the following proviso and Explanation shall be inserted, namely:

Provided that this section shall not apply to any asset referred to in clause (i), (ii), (iii), (iv), (v) or (vi), which is held by the assessee as stock-in-trade in a business carried on by it or, in the case of motor-cars referred to in clause (vii), they are hold as stock-in-trade in such business or registered as taxies and used as such in a business of running motor-cars on the hire carried on by the assessee.

Explanation. Where any question arises as to whether all or any of the assets referred to in clause (i), (ii), (iii) or (iv) are held by the assessee as stock-in-trade in a business carried on by it, the question shall be decided in accordance with such directions as the Board may, by general or special order, issue for the guidance of the Assessing Officer, having regard to the ratio which the yearly turnover of a business of trading in such assets bears to the average of the stocks of such assets held from time to time during the year in such business ordinarily and other relevant factors. .

In the Direct Tax Laws (Amendment) Act, 1987,

(a) in Section 36, clause (a) shall be omitted;

(b) in Section 37,

(i) in clause (a), after the works, brackets and figure in sub-section (1), , the words, figures and letters with effect from the 1st day of April, 1988, shall be inserted;

(ii) in clause (b), the words, figures and letters with effect from the 1st day of April, 1988 shall be inserted at the end;

(c) in Section 38, the words, figures and letters with effect from the 1st day of April, 1988 shall be inserted at the end;

(d) Section 92, shall be omitted;

(e) in Section 128,

(i) in clause (i), the words, figures and letters with effect from the 1st day of April, 1988 shall be inserted at the end;

(ii) in clause (ii), after the words shall be inserted , the words, figures and letters with effect from the 1st day of April, 1988 shall be inserted;

(iii) in clause (iii), the words, figures and letters with effect from the 1st day of April, 1988 shall be inserted at the end;

(iv) in clause (vii), after the words shall be substituted , the words, figures and letters with effect from the 1st day of April, 1988 shall be inserted;

(f) in Section 153, clause (a) shall be omitted;

(g) in Section 154,

(i) in clause (1),

(A) in sub-clause (b), the words, figures and letters with effect from the 1st day of April, 1988 shall be inserted at the end;

(B) in sub-clause (f), the words, figures and letters with effect from the 1st day of April, 1988 shall be inserted at the end;

(ii) in clause (2), in sub-clause (b), the words, figures and letters with effect from the 1st day of April, 1988 shall be inserted at the end;

(h) in Section 155, in clause (a), in sub-clause (ii), the words, figures and letters with effect from the 1st day of April, 1988 shall be inserted at the end;

(i) in Section 158, after the words shall be inserted , the words, figures and letters with effect from the 1st day of April, 1988 shall be inserted;

(j) in Section 162,

(i) in clause (a), the words, figures and letters with effect from the 1st day of April, 1988 shall be inserted at the end;

(ii) in clause (b), after the words shall be inserted , the words, figures and letters with effect from the 1st day of April, 1988 shall be inserted;

(iii) for clause (c), the following clause shall be substituted, namely:

(c) (i) clauses (vi), (vi-a), (vii-a), (xiii), (xv), (xvi) and (xvi-a) shall be omitted with effect from the 1st day of April, 1988;

(ii) clause (xvii) shall be omitted; ;

(iv) in clause (g), after the words shall be inserted , the words, figures and letters with effect from the 1st day of April, 1988 shall be inserted;

(k) in Section 182, clause (a) shall be omitted.

(See Section 2)

Part I

In the case of every individual or Hindu undivided family or unregistered firm or other association or persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of Section 2 of the Income-tax Act, not being a case to which Sub-Paragraph II of this Paragraph or any other Paragraph of this Part applies,

The amount of income-tax computed in accordance with the preceding provisions of this Sub-Paragraph shall, in the case of every person having a total income exceeding fifty thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of five per cent. of such income-tax:

Provided that no such surcharge shall be payable by a non-resident.

In the case of every Hindu undivided family which at any time during the previous year has at least one member whose total income of the previous year relevant to the assessment year commencing on the 1st day of April, 1988 exceeds Rs. 18,000,

The amount of income-tax computed in accordance with the preceding provisions of this Sub-Paragraph shall, in the case of every person having a total income exceeding fifty thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of five per cent. of such income-tax:

Provided that no such surcharge shall be payable by a non-resident.

In the case of every co-operative society,

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph shall, in the case of every person having a total income of fifty thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of five per cent. of such income-tax.

In the case of every registered firm, not being a case to which Sub-Paragraph II of this Paragraph applies,

The amount of income-tax computed in accordance with the preceding provisions of this Sub-Paragraph shall, in the case of every person having a total income exceeding fifty thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of five per cent. of such income-tax.

In the case of every registered firm whose total income includes income derived from a profession carried on by it and the income so included is not less than fifty-one per cent. of such total income,

The amount of income-tax computed in accordance with the preceding provisions of this Sub-Paragraph shall, in the case of every person having a total income exceeding fifty thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of five per cent. of such income-tax.

Explanation. For the purposes of this Paragraph, registered firm includes an unregistered firm assessed as a registered firm under clause (b) of Section 183 of the Income-tax Act.

In the case of every local authority,

On the whole of the total income 50 per cent.

The amount of income-tax computed at the rate hereinbefore specified shall, in the case of every person having a total income exceeding fifty thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of five per cent. of such income-tax.

In the case of a company,

The amount of income-tax computed in accordance with the provisions of Item I of this Paragraph shall, in the case of every person having a total income exceeding fifty thousand rupees, be increased by a surcharge calculated at the rate of five per cent. of such income-tax.

Part II

Rates for deduction of tax at source in certain cases

In every case in which under the provisions of Sections 193, 194, 194-A, 194-B, 194-BB, 194-D and 195 of the Income-tax Act, tax is to be deducted at the rates in force, deduction shall be made from the income subject to deduction at the following rates:

Explanation. For the purposes of this Part, investment income , long-term capital gains and non-resident Indian shall have the meanings assigned to them in Chapter XII-A of Income-tax Act.

The amount of income-tax deducted in accordance with the provisions of

(a) sub-item (a) of Item 1 of this Part shall be increased by a surcharge for purposes of the Union, and

(b) sub-item (a) of Item 2 of this Part shall be increased by a surcharge,

calculated at the rate of five per cent. of such income-tax.

Part III

Rates for calculating or charging income-tax in certain cases, deducting income-tax from income chargeable under the head Salaries and computing advance tax

In cases in which income-tax has to be calculated under the first proviso to sub-section (5) of Section 132 of the Income-tax Act or charged under sub-section (4) of Section 172 or sub-section (2) of Section 174 or Section 175 or sub-section (2) of Section 176 of the said Act or deducted under Section 192 of the said Act from income chargeable under the head Salaries or in which the advance tax payable under Chapter XVII-C of the said Act has to be computed, at the rate or rates in force, such income-tax, or as the case may be, advance tax [not being advance tax in respect of any income chargeable to tax under Chapter XII or Chapter XII-A or sub-section (1-A) of Section 161 or Section 164 or Section 164-A or Section 167-B of the Income-tax Act at the rates as specified in that Chapter or section or surcharge on such advance tax in respect of any income chargeable to tax under Section 115-B], shall be so calculated, charged, deducted or computed at the following rate or rates:

In the case of every individual or Hindu undivided family or unregistered firm or other association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of Section 2 of the Income-tax Act, not being a case to which Sub-Paragraph II of this Paragraph or any other Paragraph of this Part applies,

The amount of income-tax computed in accordance with the preceding provisions of this Sub-Paragraph shall, in the case of every person having a total income exceeding fifty thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of five per cent. of such income-tax:

Provided that no such surcharge shall be payable by a non-resident.

In the case of every Hindu undivided family which at any time during the previous year has at least one member whose total income of the previous year relevant to the assessment year commencing on the 1st day of April, 1989 exceeds Rs. 18,000

The amount of income-tax computed in accordance with the preceding provisions of this Sub-Paragraph shall, in the case of every person having a total income exceeding fifty thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of five per cent. of such income-tax:

Provided that no such surcharge shall be payable by a non-resident.

In the case of every co-operative society,

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph shall, in the case of every person having a total income exceeding fifty thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of five per cent. of such income-tax.

In the case of every registered firm, not being a case to which Sub-Paragraph II of this Paragraph applies,

The amount of income-tax computed in accordance with the preceding provisions of this Sub-Paragraph shall, in the case of every person having a total income exceeding fifty thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of five per cent. of such income-tax.

In the case of every registered firm whose total income includes income derived from a profession carried on by it and the income so included is not less than fifty-one per cent. of such total income,

The amount of income-tax computed in accordance with the preceding provisions of this Sub-Paragraph shall, in the case of every person having a total income exceeding fifty thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of five per cent. of such income-tax.

Explanation. For the purposes of this Paragraph, registered firm includes an unregistered firm assessed as a registered firm under clause (b) of Section 183 of the Income-tax Act.

In the case of every local authority,

On the whole of the total income 50 per cent.

The amount of income-tax computed at the rate hereinbefore specified shall, in the case of every person having a total income exceeding fifty thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of five per cent. of such income-tax.

In the case of a company,

The amount of income-tax computed in accordance with the provisions of Item I of this Paragraph shall, in the case of every person having a total income exceeding fifty thousand rupees, be increased by a surcharge calculated at the rate of five per cent. of such income-tax.

PART IV

[See Section 2(9)(e)]

Rules for computation of net agricultural income

Rule 1. Agricultural income of the nature referred to in sub-clause (a) of clause (1) of Section 2 of the Income-tax Act shall be computed as if it were income chargeable to income-tax under that Act under the head Income from other sources and the provisions of Sections 57 to 59 of that Act shall, so far as may be, apply accordingly:

Provided that sub-section (2) of Section 58 shall apply subject to the modification that the reference to Section 40-A therein shall be construed as not including a reference to sub-sections (3) and (4) of Section 40-A.

Rule 2. Agricultural income of the nature referred to in sub-clause (b) or sub-clause (c) of clause (1) of Section 2 of the Income-tax Act [other than income derived from any building required as a dwelling house by the receiver of the rent or revenue or the cultivator or the receiver of rent-in-kind referred to in the said sub-clause (c)] shall be computed as if it were income chargeable to income-tax under that Act under the head Profits and gains of business or profession and the provisions of Sections 30, 31, 32, 36, 37, 38, 40, 40-A [other than sub-sections (3) and (4) thereof], 41, 43, 43-A and 43-B of the Income-tax Act shall, so far as may be, apply accordingly.

Rule 3. Agricultural income of the nature referred to in sub-clause (c) of clause (1) of Section 2 of the Income-tax Act, being income derived from any building required as a dwelling house by the receiver of the rent or revenue or the cultivator or the receiver of rent-in-kind referred to in the said sub-clause (c) shall be computed as if it were income chargeable to income-tax under that Act under the head Income from house property and the provisions of Sections 23 to 27 of that Act shall, so far as may be, apply accordingly.

Rule 4. Notwithstanding anything contained in any other provisions of these rules, in a case where the assessee derives income from sale of tea grown and manufactured by him in India, such income shall be computed in accordance with Rule 8 of the Income-tax Rules, 1962, and sixty per cent. of such income shall be regarded as the agricultural income of the assessee.

Rule 5. Where the assessee is a partner of a registered firm or an unregistered firm assessed as a registered firm under clause (b) of Section 183 of the Income-tax Act, which in the previous year has any agricultural income, or is a partner of an unregistered firm which has not been assessed as a registered firm under clause (b) of the said Section 183 and which in the previous year has either no income chargeable to tax under the Income-tax Act or has total income not exceeding the maximum amount not chargeable to tax in the case of an unregistered firm but has any agricultural income, then, the agricultural income or loss of the firm shall be computed in accordance with these rules and his share in the agricultural income or loss of the firm shall be computed in the manner laid down in sub-section (1), sub-section (2) and sub-section (3) of Section 67 of the Income-tax Act and the share so computed shall be regarded as the agricultural income or loss of the assessee.

Rule 6. Where the assessee is a member of an association of persons or a body of individuals (other than a Hindu undivided family, a company or a firm) which in the previous year has either no income chargeable to tax under the Income-tax Act or has total income not exceeding the maximum amount not chargeable to tax in the case of an association of persons or a body of individuals (other than a Hindu undivided family, a company or a firm) but has any agricultural income, then, the agricultural income or loss of the association or body shall be computed in accordance with these rules and the share of the assessee in the agricultural income or loss so computed shall be regarded as the agricultural income or loss of the assessee.

Rule 7. Where the result of the computation for the previous year in respect of any source of agricultural income is a loss, such loss shall be set off against the income of the assessee, if any, for that previous year from any other source of agricultural income:

Provided that where the assessee is a partner of an unregistered firm which has not been assessed as a registered firm under clause (b) of Section 183 of the Income-tax Act or is a member of an association of persons or a body of individuals and the share of the assessee in the agricultural income of the firm, association or body, as the case may be, is a loss, such loss shall not be set off against any income of the assessee from any other source of agricultural income.

Rule 8. Any sum payable by the assessee on account of any tax levied by the State Government on the agricultural income shall be deducted in computing the agricultural income.

Rule 9. (1) Where the assessee has, in the previous year relevant to the assessment year commencing on the 1st day of April, 1988, any agricultural income and the net result of the computation of the agricultural income of the assessee for any one or more of the previous years relevant to the assessment years commencing on the 1st day of April, 1980 or the 1st day of April, 1981 or the 1st day of April, 1982 or the 1st day of April, 1983 or the 1st day of April, 1984 or the 1st day of April, 1985 or the 1st day of April, 1986 or the 1st day of April, 1987, is a loss, then for the purposes of sub-section (2) of Section 2 of this Act,

(i) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1980, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1981 or the 1st day of April, 1982 or the 1st day of April, 1983 or the 1st day of April, 1984 or the 1st day of April, 1985 or the 1st day of April, 1986 or the 1st day of April, 1987,

(ii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1981, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1982 or the 1st day of April, 1983 or the 1st day of April, 1984 or the 1st day of April, 1985 or the 1st day of April, 1986 or the 1st day of April, 1987,

(iii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1982, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1983 or the 1st day of April, 1984 or the 1st day of April, 1985 or the 1st day of April, 1986 or the 1st day of April, 1987,

(iv) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1983, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1984 or the 1st day of April, 1985 or the 1st day of April, 1986 or the 1st day of April, 1987,

(v) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1984, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1985 or the 1st day of April, 1986 or the 1st day of April, 1987,

(vi) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1985, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1986 or the 1st day of April, 1987,

(vii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1986, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1987, and

(viii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1987,

shall be set off against the agricultural income of the assessee for the previous year relevant to the assessment year commencing on the 1st day of April, 1988.

(2) Where the assessee has, in the previous year relevant to the assessment year commencing on the 1st day of April, 1989 or, if by virtue of any provision of the Income-tax Act, income-tax is to be charged in respect of the income of a period other than that previous year, in such other period, any agricultural income and the net result of the computation of the agricultural income of the assessee for any one or more of the previous years relevant to the assessment years commencing on the 1st day of April, 1981 or the 1st day of April, 1982 or the 1st day of April, 1983 or the 1st day of April, 1984 or the 1st day of April, 1985 or the 1st day of April, 1986 or the 1st day of April, 1987, or the 1st day of April, 1988, is a loss, for the purposes of sub-section (8) of Section 2 of this Act,

(i) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1981, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1982 or the 1st day of April, 1983 or the 1st day of April, 1984 or the 1st day of April, 1985 or the 1st day of April, 1986 or the 1st day of April, 1987, or the 1st day of April, 1988,

(ii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1982, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1983 or the 1st day of April, 1984 or the 1st day of April, 1985 or the 1st day of April, 1986 or the 1st day of April, 1987, or the 1st day of April, 1988,

(iii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1983, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1984 or the 1st day of April, 1985 or the 1st day of April, 1986 or the 1st day of April, 1987, or the 1st day of April, 1988,

(iv) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1984, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1985 or the 1st day of April, 1986 or the 1st day of April, 1987, or the 1st day of April, 1988,

(v) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1985, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1986 or the 1st day of April, 1987, or the 1st day of April, 1988,

(vi) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1986, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1987, or the 1st day of April, 1988,

(vii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1987, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1988, and

(viii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1988,

shall be set off against the agricultural income of the assessee for the previous year relevant to the assessment year commencing on the 1st day of April, 1989.

(3) Where a change has occurred in the constitution of a firm, nothing in sub-rule (1) or sub-rule (2) shall entitle the firm to set off so much of the loss proportionate to the share of a retired or deceased partner computed in the manner laid down in sub-section (1), sub-section (2) and sub-section (3) of Section 67 of the Income-tax Act as exceeds his share of profits, if any, of the previous year in the firm, or entitle any partner to the benefit of any portion of the said loss (computed in the manner aforesaid) which is not apportionable to him.

(4) Where any person deriving any agricultural income from any source has been succeeded in such capacity by another person, otherwise than by inheritance, nothing in sub-rule (1) or sub-rule (2) shall entitle any person, other than the person incurring the loss, to have it set off under sub-rule (1) or, as the case may be, sub-rule (2).

(5) Notwithstanding anything contained in this rule, no loss which has not been determined by the Assessing Officer under the provisions of these rules or the rules contained in Part IV of the First Schedule to the Finance (No. 2) Act, 1980 (44 of 1980), or of the First Schedule to the Finance Act, 1981 (16 of 1981), or of the First Schedule to the Finance Act, 1982 (14 of 1982), or of the First Schedule to the Finance Act, 1983 (11 of 1983), or of the First Schedule to the Finance Act, 1984 (21 of 1984), or of the First Schedule to the Finance Act, 1985 (32 of 1985), or of the First Schedule to the Finance Act, 1986 (23 of 1986), or of the First Schedule to the Finance Act, 1987 (11 of 1987), shall be set off under sub-rule (1) or, as the case may be, sub-rule (2).

Rule 10. Where the net result of the computation made in accordance with these rules is a loss, the loss so computed shall be ignored and the net agricultural income shall be deemed to be nil.

Rule 11. The provisions of the Income-tax Act relating to procedure for assessment (including the provisions of Section 288-A relating to rounding off of income) shall, with the necessary modifications, apply in relation to the computation of the net agricultural income of the assessee as they apply in relation to the assessment of the total income.

Rule 12. For the purposes of computing the net agricultural income of the assessee, the Assessing Officer shall have the same powers as he has under the Income-tax Act for the purposes of assessment of the total income.

(See Section 76)

In the First Schedule to the Customs Tariff Act,

(i) in Chapter 8,

(1) in sub-heading Nos. 0802.11 and 0802.12, for the entries in columns (4) and (5), the entries 100% plus Rs. 50 per Kg. and 90% plus Rs. 50 per Kg. shall, respectively, be substituted;

(2) in sub-heading No. 0802.50, for the entries in columns (4) and (5), the entries 200% plus Rs. 25 per Kg. and 190% plus Rs. 25 per Kg. shall, respectively, be substituted;

(3) in sub-heading No. 0806.20, for the entries in columns (4) and (5), the entries 100% plus Rs. 50 per Kg. and 90% plus Rs. 50 per Kg. shall, respectively, be substituted;

(4) in sub-heading No. 0813.50, for the entries in columns (4) and (5), the entries 200% plus Rs. 25 per Kg. and 190% plus Rs. 25 per Kg. shall, respectively, be substituted;

(ii) in Chapter 12, in sub-heading No. 1207.10, for the entries in columns (4) and (5), the entries 200% and 190% shall, respectively, be substituted;

(iii) in Chapter 22, in sub-heading No. 2208.10, for the entry in column (4), the entry Rs. 80 per litre or 270%, whichever is higher shall be substituted;

(iv) in Chapter 26, in sub-heading Nos. 2620.11 and 2620.19, for the entry in column (4), the entry 150% shall be substituted;

(v) in Chapter 28, in sub-heading Nos. 2801.10, 2801.20, 2801.30, 2802.00, 2803.00, 2804.10, 2804.21, 2804.29, 2804.30, 2804.40, 2804.50, 2804.61, 2804.69, 2804.70, 2804.80, 2804.90, 2805.11, 2805.19, 2805.21, 2805.22, 2805.30, 2805.40, 2806.10, 2806.20, 2807.00, 2808.00, 2809.10, 2809.20, 2810.00, 2811.11, 2811.19, 2811.21, 2811.22, 2811.23, 2811.29, 2812.10, 2812.90, 2813.10, 2813.90, 2814.10, 2814.20, 2815.11, 2815.12, 2815.20, 2815.30, 2816.10, 2816.20, 2816.30, 2817.00, 2818.10, 2818.20, 2818.30, 2819.10, 2819.90, 2820.10, 2820.90, 2821.10, 2821.20, 2822.00, 2823.00, 2824.10, 2824.20, 2824.90, 2825.10, 2825.20, 2825.30, 2825.40, 2825.50, 2825.60, 2825.70, 2825.80, 2825.90, 2826.11, 2826.12, 2826.19, 2826.20, 2826.30, 2826.90, 2827.10, 2827.20, 2827.31, 2827.32, 2827.33, 2827.34, 2827.35, 2827.36, 2827.37, 2827.38, 2827.39, 2827.41, 2827.49, 2827.51, 2827.59, 2827.60, 2828.10, 2828.90, 2829.11, 2829.19, 2829.90, 2830.10, 2830.20, 2830.30, 2830.90, 2831.10, 2831.90, 2832.10, 2832.20, 2832.30, 2833.11, 2833.19, 2833.21, 2833.22, 2833.23, 2833.24, 2833.25, 2833.26, 2833.27, 2833.29, 2833.30, 2833.40, 2834.10, 2834.21, 2834.22, 2834.29, 2835.10, 2835.21, 2835.22, 2835.23, 2835.24, 2835.25, 2835.26, 2835.29, 2835.31, 2835.39, 2836.10, 2836.20, 2836.30, 2836.40, 2836.50, 2836.60, 2836.70, 2836.91, 2836.92, 2836.93, 2836.99, 2837.11, 2837.19, 2837.20, 2838.00, 2839.11, 2839.19, 2839.20, 2839.90, 2840.11, 2840.19, 2840.20, 2840.30, 2841.10, 2841.20, 2841.30, 2841.40, 2841.50, 2841.60, 2841.70, 2841.80, 2841.90, 2842.10, 2842.90, 2843.10, 2843.21, 2843.29, 2843.30, 2843.90, 2844.10, 2844.20, 2844.30, 2844.40, 2844.50, 2845.10, 2845.90, 2846.10, 2846.90, 2847.00, 2848.10, 2848.90, 2849.10, 2849.20, 2849.90, 2850.00 and 2851.00, for the entry in column (4), the entry 100% plus Rs. 25 per Kg. shall be substituted;

(vi) in Chapter 29,

(1) in sub-heading Nos. 2901.10, 2901.21, 2901.22, 2901.23, 2901.24, 2901.29, 2902.11, 2902.19, 2902.41, 2902.42, 2902.43, 2902.50, 2902.70, 2902.90, 2903.11, 2903.12, 2903.13, 2903.14, 2903.15, 2903.16, 2903.19, 2903.21, 2903.22, 2903.23, 2903.29, 2903.30, 2903.40, 2903.51, 2903.59, 2903.61, 2903.62, 2903.69, 2904.10, 2904.20, 2904.90, 2905.11, 2905.12, 2905.13, 2905.14, 2905.15, 2905.16, 2905.17, 2905.19, 2905.21, 2905.22, 2905.29, 2905.31, 2905.32, 2905.39, 2905.41, 2905.42, 2905.43, 2905.44, 2905.49, 2905.50, 2906.11, 2906.12, 2906.13, 2906.14, 2906.19, 2906.21, 2906.29, 2907.11, 2907.12, 2907.13, 2907.14, 2907.15, 2907.19, 2907.21, 2907.22, 2907.23, 2907.29, 2907.30, 2908.10, 2908.20, 2908.90, 2909.11, 2909.19, 2909.20, 2909.30, 2909.41, 2909.42, 2909.43, 2909.44, 2909.49, 2909.50, 2909.60, 2910.10, 2910.20, 2910.30, 2910.90, 2911.00, 2912.11, 2912.12, 2912.13, 2912.19, 2912.21, 2912.29, 2912.30, 2912.41, 2912.42, 2912.49, 2912.50, 2912.60, 2913.00, 2914.11, 2914.12, 2914.13, 2914.19, 2914.22, 2914.23, 2914.29, 2914.30, 2914.41, 2914.49, 2914.50, 2914.61, 2914.70, 2915.11, 2915.12, 2915.13, 2915.21, 2915.22, 2915.23, 2915.24, 2915.29, 2915.31, 2915.32, 2915.33, 2915.34, 2915.35, 2915.39, 2915.40, 2915.50, 2915.60, 2915.70, 2915.90, 2916.11, 2916.12, 2916.13, 2916.14, 2916.15, 2916.19, 2916.20, 2916.31, 2916.32, 2916.33, 2916.39, 2917.11, 2917.12, 2917.13, 2917.14, 2917.19, 2917.20, 2917.31, 2917.32, 2917.33, 2917.34, 2917.35, 2917.39, 2918.11, 2918.12, 2918.13, 2918.14, 2918.15, 2918.16, 2918.17, 2918.19, 2918.21, 2918.22, 2918.23, 2918.29, 2918.30, 2918.90, 2919.00, 2920.10, 2920.90, 2921.11, 2921.12, 2921.19, 2921.21, 2921.22, 2921.29, 2921.30, 2921.44, 2921.49, 2921.51, 2922.11, 2922.12, 2922.13, 2922.19, 2922.21, 2922.22, 2922.29, 2922.30, 2922.41, 2922.42, 2922.49, 2923.10, 2923.20, 2923.90, 2924;10, 2924.21, 2924.29, 2925.19, 2925.20, 2926.10, 2926.20, 2926.90, 2927.03, 2928.03, 2929.10, 2929.90, 2930.10, 2930.20, 2930.30, 2930.43, 2933.93, 2931.33, 2932.11, 2932.12, 2932.13, 2932.19, 2932.21, 2932.29, 2932.90, 2933.11, 2933.19, 2933.21, 2933.29, 2933.31, 2933.39, 2933.40, 2933.51, 2933.59, 2933.61, 2933.69, 2933.79, 2933.90, 2934.10, 2934.20, 2934.30, 2934.90 and 2935.00, for the entry in column (4), the entry 100% plus Rs. 25 per Kg. shall be substituted;

(2) in sub-heading Nos. 2936.10, 2936.21, 2936.22, 2936.23, 2936.24, 2936.25, 2936.26, 2936.27, 2936.28, 2936.29 and 2936.90, for the entries in columns (4) and (5), the entries 100% plus Rs. 25 per Kg. and 94% plus Rs. 25 per Kg. shall, respectively, be substituted;

(3) in sub-heading Nos. 2937.10, 2937.21, 2937.22, 2937.29, 2937.91, 2937.92 and 2937.99, for the entries in columns (4) and (5), the entries 100% plus Rs. 25 per Kg. and 90% plus Rs. 25 per Kg. shall, respectively, be substituted;

(4) in sub-heading Nos. 2938.10, 2938.90, 2939.10, 2939.21, 2939.29 and 2939.30, for the entry in column (4), the entry 100% plus Rs. 25 per Kg. shall be substituted;

(5) in sub-heading Nos. 2939.40 and 2939.50, for the entries in columns (4) and (5), the entries 100% plus Rs. 25 per Kg. and 90% plus Rs. 25 per Kg. shall, respectively, be substituted;

(6) in sub-heading Nos. 2939.60, 2939.70, 2939.90 and 2940.00, for the entry in column (4), the entry 100% plus Rs. 25 per Kg. shall be substituted;

(7) in sub-heading Nos. 2941.10, 2941.20, 2941.30, 2941.40, 2941.50 and 2941.90, for the entries in columns (4) and (5), the entries 100% plus Rs. 25 per Kg. and 94% plus Rs. 25 per Kg. shall, respectively, be substituted;

(8) in sub-heading No. 2942.00, for the entry in column (4), the entry 100% plus Rs. 25 per Kg. shall be substituted;

(vii) in Chapter 38,

(1) in sub-heading No. 3801.10, for the entries in columns (4) and (5), the entries 100% plus Rs. 25 per Kg. And 90% plus Rs. 25 per Kg. shall, respectively, be substituted;

(2) in sub-heading Nos. 3801.20, 3801.30 and 3801.90, for the entry in column (4), the entry 100% plus Rs. 25 per Kg. shall be substituted;

(3) in sub-heading No. 3802.10 for the entries in columns (4) and (5), the entries 100% plus Rs. 25 per Kg. and 90% plus Rs. 25 per Kg. shall, respectively, be substituted;

(4) in sub-heading Nos. 3802.90, 3803.00, 3804.00, 3805.10, 3805.20, 3805.90, 3806.10, 3806.20, 3806.30, 3806.90, 3807.00, 3808.10, 3808.20, 3808.30, 3808.40, 3808.90, 3809.10, 3809.91, 3809.92, 3809.99, 3810.10, 3810.10, 3810.90, 3811.11, 3811.19, 3811.21, 3811.29 and 3811.90 for the entry in column (4), the entry 100% plus Rs. 25 per Kg. shall be substituted;

(5) in sub-heading No. 3812.10 for the entries in columns (4) and (5), the entries 100% plus Rs. 25 per Kg. and 90% plus Rs. 25 per Kg. shall, respectively, be substituted;

(6) in sub-heading Nos. 3812.20, 3812.30, 3813.00 and 3814.00, for the entry in column (4), the entry 100% plus Rs. 25 per Kg. shall be substituted;

(7) in sub-heading Nos. 3815.11 and 3815.12, for the entries in columns (4) and (5), the entries 100% plus Rs. 25 per Kg. and 90% plus Rs. 25 per Kg. shall, respectively, be substituted;

(8) in sub-heading Nos. 3815.19, 3815.90, 3816.00, 3817.10, 3817.20, 3818.00, 3819.00, 3820.00, 3821.00, 3822.00, 3823.10, 3823.20, 3823.30, 3823.40, 3823.50, 3823.60 and 3823.90, for the entry in column (4), the entry 100% plus Rs. 25 per Kg. shall be substituted;

(viii) in Chapter 39, in sub-heading Nos. 3919.10 and 3919.90, for the entry in column (4), the entry 100% plus Rs. 100 per Kg. shall be substituted;

(ix) in Chapter 89,

(1) for the word Note , occurring below the title of the Chapter, the word Notes shall be substituted.

(2) the existing Note shall be numbered as Note 1, and after Note 1 as so numbered, the following Note shall be inserted, namely:

2. In heading No. 89.08 Light Displacement Tonnage (LDT) means LDT in metric tonnes as per Builder's Registered LDT referred to in the Stability Book or the builder's certificate at the time of initial commissioning of the vessel or the floating structure:

Provided that in case of any change in the LDT, the highest of the LDT indicated in any of the documents referred to above shall be taken for the purpose of levy of duty. ;

(x) In Chapter 99, in heading No. 99.12, in column (3), for the words TRADE CATALOUGES AND ADVERTISEMENTS CIRCULARS , the words, COMMERCIAL CATALOGUES IN BOOK FORM shall be substituted.

(See Section 81)

Part I

In the Schedule to the Central Excise Tariff Act,

(1) In Chapter 9,

(a) in sub-heading No. 0902.11, for the entry in column (4), the entry Rs. 2.50 per kilogram shall be substituted;

(b) in sub-heading No. 0902.12, for the entry in column (4), the entry Rs. 3.25 per kilogram shall be substituted;

(c) in sub-heading No. 0902.13, for the entry in column (4), the entry 15% shall be substituted;

(2) In Chapter 15, in sub-heading No. 1508.90, for the entry in column (4), the entry Rs. 1,900 per tonne shall be substituted;

(3) in Chapter 21,

(a) in sub-heading No. 2101.10, for the entry in column (4), the entry 30% shall be substituted;

(b) in sub-heading No. 2101.20, for the entry in column (4), the entry 15% shall be substituted;

(c) in sub-heading No. 2106.11, for the entry in column (4), the entry 25% plus Rs. 40 per kilogram shall be substituted;

(4) in Chapter 22,

(a) in sub-heading Nos. 2201.11 and 2201.12, in column (4), for the figures and word 25 paise , the figures and word 50 paise shall be substituted;

(b) in sub-heading No. 2202.11, for the entry in column (4), the entry 75 paise shall be substituted;

(c) in sub-heading No. 2202.12, for the entry in column (4), the entry 80 paise shall be substituted;

(d) in sub-heading No. 2202.13, for the entry in column (4), the entry 90 paise shall be substituted;

(e) in sub-heading No. 2202.14, in column (4), for the figures and word 65 paise , the figures and word 90 paise shall be substituted;

(5) in Chapter 26, for Notes 2 and 3, the following Notes shall be substituted, namely:

2. For the purposes of heading Nos. 26.01 to 26.17, the term Ores means minerals of mineralogical species actually used in the metallurgical industry for the extraction of mercury, of the metals of heading No. 28.44 or of the metals of Section XIV or XV, even if they are intended for non-metallurgical purposes. Heading Nos. 26.01 or 26.17 do not, however, include minerals which have been submitted to processes not normal to the metallurgical industry.

3. Heading No. 26.20 applies only to ash and residues of a kind used in industry either for the extraction of metals or as a basis for the manufacture of chemical compounds of metals. ;

(6) in Chapter 27,

(a) in Note 3, for the figures and word 2707.91, 2707.92, 2707.93, 2707.94 and 2707.95 , the figures and word 2707.10, 2707.20, 2707.30, 2707.40 and 2707.50 shall be substituted;

(b) in sub-heading Nos. 2701.00, 2702.00, 2703.00, 2704.00, 2705.00, 2707.40, 2708.19 and 2709.00, for the entry in column (4), the entry 15% shall be substituted;

(c) in sub-heading No. 2710.50, for the entry in column (4), the entry Rs. 145 per kilolitre at 15 C shall be substituted;

(d) in sub-heading No. 2710.94, for the entry in column (4), the entry Rs. 620 per tonne shall be substituted;

(e) in sub-heading Nos. 2711.11 and 2711.21, for the entry in column (4), the entry 15% shall be substituted;

(f) in sub-heading No. 2713.21, for the entry in column (4), the entry Rs. 160 per tonne shall be substituted;

(g) in sub-heading No. 2713.22, for the entry in column (4), the entry Rs. 110 per tonne shall be substituted;

(h) in sub-heading No. 2714.11, for the entry in column (4), the entry Rs. 160 per tonne shall be substituted;

(i) in sub-heading No. 2714.12, for the entry in column (4), the entry Rs. 110 per tonne shall be substituted;

(j) in sub-heading No. 2714.90, for the entry in column (4), the entry 15% shall be substituted;

(k) in sub-heading No. 2715.11, for the entry in column (4), the entry Rs. 160 per tonne shall be substituted;

(l) in sub-heading No. 2715.90, for the entry in column (4), the entry 15% shall be substituted;

(7) in Chapter 29, in sub-heading Nos. 2941.10, 2941.20, 2941.30, 2941.40, 2941.50 and 2941.90, for the entry in column (4), the entry 15% shall be substituted;

(8) in Chapter 30, Note 6 shall be omitted;

(9) in Chapter 36, in sub-heading No. 3602.00, for the entry in column (4), 20% shall be substituted;

(10) in Chapter 37,

(a) in sub-heading Nos. 3701.20 and 3702.20, for the entry in column (4), the entry Rs. 1.50 per metre shall be substituted;

(b) in sub-heading No. 3702.90, for the entry in column (4), the entry 20% plus Rs. 24 per square metre shall be substituted;

(11) in Chapter 39,

(a) for Note 6, the following Note shall be substituted, namely:

6. (a) In heading Nos. 39.01 to 39.14, the expression primary forms applies only to the following forms:

(i) Liquids and pastes, including dispersions (emulsions and suspensions) and solutions;

(ii) Blocks of irregular shape, lumps, powders (including moulding powders), granules, flakes and similar bulk forms.

(b) Notwithstanding anything contained in Note 3 to this Chapter, heading Nos. 39.01 to 39.14 shall also includes primary forms obtained from conversion of another primary form, falling under the same heading, and such conversion shall amount to manufacture . ;

(b) for Note 13, the following Note shall be substituted, namely:

13. Notwithstanding anything contained in Note 12 to this Chapter, in heading Nos. 39.09, 39.21, 39.23, 39.24, 39.25 and 39.26, rigid polyurethane foam means cellular polyurethane with compressive strength of 0.418 to 28.14 Kg./Cm² and flexural strength of 1.05 to 28.14 Kg./Cm² when tested in accordance with American Standard (Designation ASTM-D-2341). ;

(c) after Note 14, the following Note shall be inserted, namely:

15. For the purposes of heading Nos. 39.19, 39.20 and 39.21, the expression film means sheeting of thickness not exceeding 0.25 millimetres. ;

(d) in sub-heading Nos. 3909.60 and 3926.10, in column (4), for the figures and abbreviation 75% , the figures, abbreviations and words 60% plus Rs. 40 per kilogram shall be substituted;

(12) in Chapter 40, in sub-heading No. 4011.10, for the entry in column (4), the entry 60% shall be substituted;

(13) in Chapter 48,

(a) for Note 3, the following Note shall be substituted, namely:

3. In this Chapter newsprint means paper intended for the printing of newspapers. ;

(b) for Note 8, the following Notes shall be substituted, namely:

8. Heading No. 48.20 does not cover loose sheets or cards, cut to size, whether or not printed, embossed or perforated.

9. Heading No. 48.23 applies, inter alia, to perforated paper or paperboard cards for jacquard or similar machines and paper lace.

10. Except for the goods of heading No. 48.14 or 48.21, paper, paperboard, cellulose wadding and articles thereof, printed with motifs, characters or pictorial representations, which are not merely incidental to the primary use of the goods, fall in Chapter 49. ;

(c) in sub-heading No. 4811.90, in column (4), for the figures, abbreviations and word 10% plus Rs. 2,000 , the figures, abbreviations and word 35% plus Rs. 2,000 shall be substituted;

(14) in Chapter 52,

(a) Notes 3 and 4 shall be omitted;

(b) Notes 5 and 6 shall be shall be renumbered as Notes 3 and 4, respectively;

(c) in sub-heading No. 5203.33, for the entry in column (4), the entry 26.40 paise plus 3.52 paise per count per kilogram exceeding 35 shall be substituted;

(d) in sub-heading No. 5203.34, for the entry in column (4), the entry 61.60 paise plus 5.28 paise per count per kilogram exceeding 45 shall be substituted;

(e) in sub-heading No. 5203.35, for the entry in column (4), the entry 114.40 paise plus 2.64 paise per count per kilogram exceeding 55 shall be substituted;

(f) in sub-heading No. 5203.43, for the entry in column (4), the entry 114.40 paise plus 5.28 paise per count per kilogram exceeding 35 shall be substituted;

(g) sub-heading Nos. 5206.10 and 5206.20 and the entries relating thereto shall be omitted;

(h) sub-heading Nos. 5206.31, 5206.32, 5206.33, 5206.34, 5206.35, and 5206.36 shall be renumbered as sub-heading Nos. 5206.11, 5206.12, 5206.14, 5206.14 and 5206.16 respectively;

(15) in Chapter 70,

(a) in Note 1, in item (c), for the words fittings or insulating material , the words fittings of insulating material shall be substituted;

(b) in heading No. 70.14, in column (4), for the figures and abbreviation 30% , the figures and abbreviation 35% shall be substituted;

(16) in Section XV, for the Note, the following Notes shall be substituted, namely:

1. This section does not cover:

(a) Prepaid paints, inks or other products with a basis of metallic flakes, or powder (heading Nos. 32.07 to 32.10, 32.12, 32.13 or 32.15);

(b) Ferro-cerium or other pyrophoric alloys (heading No. 36.06);

(c) Headgear or parts thereof of Chapter 65;

(d) Umbrella frames or other articles of Chapter 66;

(e) Goods of Chapter 71 (for example, precious metal alloys, base metal clad with precious metal, imitation jewellery);

(f) Articles of Section XVI (machinery, mechanical appliances and electrical goods);

(g) Assembled railway of tramway track (heading No. 86.08) or other articles of Section XVII (vehicles, ships and boats, aircraft);

(h) Instruments or apparatus of Section XVIII, including clock or watch springs;

(ij) Lead shot prepared for ammunition (heading No. 93.06) or other articles of Section XIX (arms and ammunition);

(k) Articles of Chapter 94 (for example, furniture, mattress supports, lamps and lighting fittings, illuminated signs, prefabricated buildings);

(l) Articles of Chapter 95 (for example, toys, games, sports requisites); or

(m) Hand sieves, buttons, pens, pencil-holders, pen nibs or other articles of Chapter 96 (miscellaneous manufactured articles).

2. Throughout this Schedule, the expression parts of general use means:

(a) Articles of heading No. 73.07, 73.12, 73.15, 73.17 or 73.18 and similar articles of other base metal;

(b) Springs and leaves for springs, of base metal, other than clock or watch springs (heading No. 91.14); and

(c) Articles of heading Nos. 83.01, 83.02, 83.08, 83.10 and frames and mirrors, of base metal, of heading No. 83.06.

In Chapters 73 to 76 and 78 to 82 (but not in heading No. 73.15) references to parts of goods do not include references to parts of general use as defined above.

Subject to the preceding paragraph and to Note 1 to Chapter 83, the articles of Chapter 82 or 83 are excluded from Chapters 72 to 76 and 78 to 81.

3. Classification of alloys (other than ferro-alloys and master alloys as defined in Chapters 72 and 74):

(a) An alloy of base metals is to be classified as an alloy of the metal which predominates by weight over each of the other metals;

(b) An alloy composed of base metals of this section and of elements not falling within this section is to be treated as an alloy of base metals of this section if the total weight of such metals equals or exceeds the total weight of the other elements present;

(c) In this section the term alloys includes sintered mixtures of metal powders, heterogeneous intimate mixtures obtained by melting (other than cermets) and intermetallic compounds.

4. Unless the context otherwise requires, any reference in this Schedule to a base metal includes a reference to alloys which, by virtue of Note 3 above, are to be classified as alloys of that metal.

5. Classification of composite articles:

Except where the headings otherwise require, articles of base metal (including articles of mixed materials treated as articles of base metal under the Interpretative Rules) containing two or more base metals are to be treated as articles of the base metal predominating by weight over each of the other metals. For this purpose:

(a) Iron and steel, or different kinds of iron or steel, are regarded as one and the same metal;

(b) An alloy is regarded as being entirely composed of that metal as an alloy of which, by virtue of Note 3, it is classified; and

(c) A cermet of heading No. 81.13 is regarded as a single base metal.

6. In this section, the following expressions have the meanings hereby assigned to them:

(a) Waste and scrap:

Metals waste and scrap from the manufacture or mechanical working of metals, and metal goods definitely not usable as such because of breakage, cutting-up, wear or other reasons.

(b) Powders:

Products of which 90% or more by weight passes though a sieve having a mesh aperture of 1 mm.;

(17) in Chapter 72, for the Notes, the following Notes shall be substituted, namely:

1. In this Chapter and, in the case of Notes (d), (e) and (f) throughout this Schedule, the following expressions have the meanings hereby assigned to them:

(a) Pig iron:

Iron-carbon alloys not usefully malleable, containing more than 2% by weight of carbon and which may contain by weight one or more other elements within the following limits:

-not more than 10% of chromium

-not more than 6% of manganese

-not more than 3% of phosphorus

-not more than 8% of silicon

-a total of not more than 10% of other elements.

(b) Spiegeleisen:

Iron-carbon alloys containing by weight more than 6% but not more than 30% of manganese and otherwise conforming to the specification at (a) above.

(c) Ferro-alloys:

Alloys in pigs, blocks, lumps or similar primary forms, in forms obtained by continuous casting and also in granular or powder forms, whether or not agglomerated, commonly used as an additive in the manufacture of other alloys or as de-oxidants, de-sulphurising agents or for similar uses in ferrous metallurgy and generally not usefully malleable, containing by weight 4% or more of the element iron and one or more of the following:

-not more than 10% of chromium

-not more than 30% of manganese

-not more than 3% of phosphorus

-not more than 8% of silicon

-a total of more than 10% of other elements, excluding carbon, subject to a maximum content of 10% in the case of copper.

(d) Steel:

Ferrous materials other than those of heading No. 72.03 which (with the exception of certain types produced in the form of castings) are usefully malleable and which contain by weight 2% or less of carbon. However, chromium steels may contain higher proportions of carbon.

(e) Stainless Steel:

Alloy steels containing, by weight, 1.2% or less of carbon and 10.5% or more of chromium, with or without other elements.

(f) Other alloy steel:

Steels not complying with the definition of stainless steel and containing by weight one or more of the following elements in the proportion shown:

-0.3% or more of aluminium

-0.0008% or more of boron

-0.3% or more of chromium

-0.3% or more of cobalt

-0.4% or more of copper

-0.4% or more of lead

-1.65% or more of manganese

-0.08% or more of molybdenum

-0.3% or more of nickel

-0.06% or more of niobium

-0.6% or more of silicon

-0.05% or more of titanium

-0.03% or more of tungsten (wolfram)

-0.1% or more of vanadium

-0.05% or more of zirconium

-0.1% or more of other elements (except sulphur, phosphorus, carbon and nitrogen), taken separately.

(g) remelting scrap ingots of iron or steel:

Products roughly cast in the form of ingots without feeder-heads or hot tops, or of pigs, having obvious surface faults and not complying with the chemical composition of pig iron, spiegeleisen or ferro-alloys.

(h) granules:

Products of which less than 90% by weight passes through a sieve with a mesh aperture of 1 mm and of which 90% or more by weight passes through a sieve with a mesh aperture of 5 mm.

(ij) semi-finished products:

Continuous cast products of solid section, whether or not subjected to primary hot-rolling; and

Other products of solid section, which have not been further worked than subjected to primary hot-rolling or roughly shaped by forging, including blanks for angles, shapes or sections.

These products are not presented in coils.

(k) flat-rolled products:

Rolled products of solid rectangular (other than square) cross-section, which do not conform to the definition at (ij) above in the form of:

-coils of successively superimposed layers, or

-straight lengths, which if of a thickness less than 4.75 mm are of a width measuring at least ten times the thickness or if of a thickness of 4.75 mm or more are of a width which exceeds 150 mm and measuring at least twice the thickness.

Flat-rolled products include those with patterns in relief derived directly from rolling (for example, grooves, ribs, chequers, tears, buttons, lozenges) and those which have been perforated, corrugated or polished, provided that they do not thereby assume the character of articles or products of other headings.

Flat-rolled products of a shape other than rectangular or square, of any size are to be classified as products of a width of 600 mm or more, provided that they do not assume the character of articles or products of other headings.

(l) bars and rods, hot-rolled, in irregularly wound coils:

Hot-rolled products in irregularly wound coils, which have a solid cross-section in the shape of circles, segments of circles, ovals, rectangles (including squares), triangles or other convex polygons. These products may have indentations, ribs, grooves or other deformations produced during the rolling process (reinforcing bars and rods).

(m) other bars and rods:

Products which do not conform to any of the definitions at (ij), (k) or (l) above or to the definition of wire, which have a uniform solid cross-section along their whole length in the shape of circles, segments of circles, ovals, rectangles (including squares), triangles or other convex polygons. These products may:

have indentations, ribs, grooves or other deformations produced during the rolling process (reinforcing bars and rods);

-be twisted after rolling.

(n) angles, shapes and sections:

Products having a uniform solid cross-section along their whole length which do not conform to any of the definitions at (ij), (k), (l) or (m) above or to the definition of wire.

Chapter 72 does not include products of heading No. 73.01 or 73.02.

(o) wire:

Cold-formed products in coils, of any uniform solid cross-section along their whole length, which do not conform to the definition of flat-rolled products.

(p) hollow drill bars and rods:

Hollow bars and rods of any cross-section, suitable for drills, of which the greatest external dimension of the cross-section exceeds 15 mm but does not exceed 52 mm, and of which the greatest internal dimension does not exceed one-half of the greatest external dimension. Hollow bars and rods of iron or steel not conforming to this definition are to be classified in heading No. 73.04.

(q) skelp:

Hot-rolled narrow strip of width not exceeding 600 mm with rolled (square, slightly round or bevelled) edge.

2. Ferrous metals clad with another ferrous metals are to be classified as products of the ferrous metal predominating by weight.

3. Iron or steel products obtained by electrolytic deposition, by pressure casting or by sintering are to be classified, according to their form, their composition and their appearance, in the headings of this Chapter appropriate to similar hot-rolled products.

In this Chapter the following expressions have the meanings hereby assigned to them:

(a) Non-alloy free-cutting steel

Non-alloy steel containing, by weight, one or more of the following elements in the specified proportions:

-0.8% or more of sulphur

-0.1% or more of lead

-more than 0.05% of selenium

-more than 0.01% of tellurium

-more than 0.05% of bismuth.

(b) Silicon-electrical steel

Alloy steels containing by weight at lest 0.6% but not more than 6% of silicon and not more than 0.08% of carbon. They may also contain by weight not more than 1% of aluminium but no other element in a proportion that would give the steel the characteristics of another alloy steel.

(c) High speed steel

Alloy steels containing, with or without other elements, at least two of the three elements molybdenum, tungsten and vanadium with a combined content by weight of 7% or more, 0.6% or more of carbon and 3 to 6% of chromium.

(d) Silicon-manganese steel

Alloy steels containing by weight:

-0.35% or more but not more than 0.7% of carbon,

-0.5% or more but not more than 1.2% of manganese, and

-0.6% or more but not more than 2.3% of silicon, but not containing any other element in a proportion that would give the steel the characteristics of another alloy steel. ;

(18) in Chapter 73, for the Notes, the following Notes shall be substituted, namely:

Notes

1. In this Chapter the expression cast iron applies to products obtained by casting in which iron predominates by weight over each of the other elements and which do not comply with the chemical composition of steel as defined in Note 1(d) to Chapter 72.

2. In this Chapter the word wire means hot or cold-formed products of any cross-sectional shape, of which no cross-sectional dimension exceeds 16 mm. ;

(19) in Chapter 74, for the Notes, the following Note shall be substituted, namely:

Note

In this Chapter the following expressions have the meanings hereby assigned to them:

(a) refined copper:

Metal containing at least 99.85% by weight of copper; or Metal containing at least 97.5% by weight of copper provided that the content by weight of any other element does not exceed the limit specified in the following table:

*Other elements are, for example, A1, Be, Co, Fe, Mn, Ni, Si.

(b) copper alloys:

Metallic substances other than unrefined copper in which copper predominates by weight over each of the other elements, provided that:

(i) the content by weight of at least one of the other elements shall be greater than the limit specified in the foregoing table; or

(ii) the total content by weight of such other elements exceeds 2.5%.

(c) master alloys:

Alloys containing with other elements more than 10% by weight of copper, not usefully malleable and commonly used as an additive in the manufacture of other alloys or as de-oxidants, de-sulphurising agents or for similar uses in the metallurgy of non-ferrous metals. However, copper phosphide (phosphor copper) containing more than 15% by weight of phosphorus falls in heading No. 28.48.

(d) bars and rods:

Rolled, extruded, drawn or forged products, not in coils, which have a uniform solid cross-section along their whole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex polygons (including flattened circles , and modified rectangles , of which two opposite sides are convex arcs, the other two sides being straight, of equal length and parallel). Products, with a rectangular (including square), triangular or polygonal cross-section may have corners rounded along their whole length. The thickness of such products which have a rectangular (including modified rectangular ) cross-section exceeds one-tenth of the width. The expression also covers cast or sintered products, of the same forms and dimensions, which have been subsequently worked after production (otherwise than by simple trimming or de-scaling), provided that they have not thereby assumed the character of articles or products of other headings.

Wire-bars and billets with their ends tapered or otherwise worked simply to facilitate their entry into machines for converting them into, for example, drawing stock (wire-rod) or tubes, are however to be taken to be unwrought copper of heading No. 74.03.

(e) profiles:

Rolled, extruded, drawn, forged or formed products, coiled or not, of a uniform cross-section along their whole length, which do not conform to any of the definitions of bars, rods, wire, plates, sheets, strip, foil, tubes or pipes. The expression also covers cast or sintered products, of the same forms, which have been subsequently worked after production (otherwise than by simple trimming or de-scaling), provided that they have not thereby assumed the character of articles or products of other headings.

(f) Rolled, extruded or drawn products, in coils, which have a uniform solid cross-section along their whole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex polygons (including flattened circles and modified rectangles , of which two opposite sides are convex arcs, the other two sides being straight, of equal length and parallel). Products with a rectangular (including square), triangular or polygonal cross-section may have corners rounded along their whole length. The thickness of such products which have a rectangular (including modified rectangular ) cross-section exceeds one-tenth of the width.

In the case of heading No. 74.14, however, the term wire applies only to products, whether or not in coils, of any cross-sectional shape, of which no cross-sectional dimensions exceeds 6 mm.

(g) plates, sheets, strip and foil:

Flat-surfaced products (other than the unwrought products of heading No. 74.03), coiled or not, of solid rectangular (other than square) cross-section with or without rounded corners (including modified rectangles of which two opposite sides are convex arcs, the other two sides being straight of equal length and parallel) of a uniform thickness, which are:

-of rectangular (including square) shape with a thickness not exceeding one-tenth of the width.

-of a shape other than rectangular or square, of any size provided that they do not assume the, character of articles or products of other headings.

Heading Nos. 74.09 and 74.10 apply, inter alia, to plates, sheets, strips and foil with patterns (for example, grooves, ribs, chequers, tears, buttons, lozenges) and to such products which have been perforated, corrugated, polished or coated, provided that they do not thereby assume the character of articles or products of other headings.

(h) tubes and pipes:

Hollow products, coiled or not, which have a uniform cross-section with only one enclosed void along their whole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex polygons, and which have a uniform wall thickness. Products with a rectangular (including square), equilateral triangular or regular convex polygonal cross-section, which may have corners rounded along their whole length, are also to be taken to be tubes and pipes provided the inner and outer cross-sections are concentric and have the same form and orientation. Tubes and pipes of the foregoing cross-sections may be polished, coated, bent, threaded, drilled, waisted, expanded, cone-shaped or fitted with flanges, collars or rings.

In this Chapter the following expressions have the meanings hereby assigned to them:

(a) Copper-zinc base alloys (brasses):

Alloys of copper and zinc, with or without other elements. When other elements are present:

-zinc predominates by weight over each of such other elements;

-any nickel content by weight is less than 5% [see copper-nickel-zinc alloys (nickel silvers)]; and

-any tin content by weight is less than 3% [see copper-tin (bronzes)].

(b) Copper-tin base alloys (bronzes):

Alloys of copper and tin, with or without other elements. When other elements are present, tin predominates by weight over each of such other elements, except that when the tin content is 3% or more the zinc content by weight may exceed that of tin but must be less than 10%.

(c) Copper-nickel-zinc based alloys (nickel silvers):

Alloys of copper, nickel and zinc, with or without other elements. The nickel content is 5% or more by weight [see copper-zinc alloys (brasses)].

(d) Copper-nickel base alloys:

Alloys of copper and nickel, with or without other elements but in any case containing by weight not more than 1% of zinc. When other elements are present, nickel predominates by weight over each of such other elements.';

(20) in Chapter 75, below the title of Chapter, the following Note shall be inserted, namely:

In this Chapter the following expressions have the meanings hereby assigned to them:

(a) bars and rods:

Rolled, extruded, drawn or forged products, not in coils, which have a uniform solid cross-section along their whole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex polygons (including flattened circles , and modified rectangles , of which two opposite sides are convex arcs, the other two sides being straight, of equal length and parallel). Products, with a rectangular (including square), triangular or polygonal cross-section may have corners rounded along their whole length. The thickness of such products which have a rectangular (including modified rectangular ) cross-section exceeds one-tenth of the width. The expression also covers cast or sintered products, of the same forms and dimensions, which have been subsequently worked after production (otherwise than by simple trimming or de-scaling), provided that they have not thereby assumed the character of articles or products of other headings.

(b) profiles:

Rolled, extruded, drawn, forged or formed products, coiled or not, of a uniform cross-section along their whole length, which do not conform to any of the definitions of bars, rods, wire, plates, sheets, strip, foil, tubes or pipes. The expression also covers cast or sintered products, of the same forms, which have been subsequently worked after production (otherwise than by simple trimming or de-scaling), provided that they have not thereby assumed the character of articles or products of other headings.

(c) wire:

Rolled, extruded or drawn products, in coils, which have a uniform solid cross-section along their whole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex polygons (including flattened circles and modified rectangles , of which two opposite sides are convex arcs, the other two sides being straight, of equal length and parallel). Products with a rectangular (including square), triangular or polygonal cross-section may have corners rounded along their whole length. The thickness of such products which have a rectangular (including modified rectangular ) cross-section exceeds one-tenth of the width.

(d) plates, sheets, strip and foil:

Flat-surfaced products (other than the unwrought products of heading No. 75.02), coiled or not, of solid rectangular (other than square) cross-section with or without rounded corners (including modified rectangles of which two opposite sides are convex arcs, the other two sides being straight, of equal length and parallel) of a uniform thickness, which are:

-of rectangular (including square) shape with a thickness not exceeding one-tenth of the width,

-of a shape other than rectangular or square, of any size provided that they do not assume the character of articles or products of other headings.

Heading No. 75.06 applies, inter alia, to plates, sheets, strips and foil with patterns (for example, grooves, ribs, chequers, tears, buttons, lozenges) and to such products which have been perforated, corrugated, polished or coated, provided that they do not thereby assume the character of articles or products of other headings.

(e) TUBES AND PIPES:

Hollow products, coiled or not, which have a uniform cross-section with only one enclosed void along their whole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex polygons, and which have a uniform wall thickness. Products with a rectangular (including square), equilateral triangular or regular convex polygonal cross-section, which may have corners rounded along their whole length, are also to be considered as tubes and pipes provided the inner and outer cross-sections are concentric and have the same form and orientation. Tubes and pipes of the foregoing cross-sections may be polished, coated, bent, threaded, drilled, waisted, expanded, cone-shaped or fitted with flanges, collars or rings.

In this Chapter the following expressions have the meanings hereby assigned to them:

(a) Nickel, not alloyed:

Metal containing by weight at least 99% of nickel plus cobalt, provided that:

(i) the cobalt content by weight does not exceed 1.5%, and

(ii) the content by weight of any other element does not exceed the limit specified in the following table:

(b) Nickel alloys:

Metallic substances in which nickel predominates by weight over each of the other elements provided that:

(i) the content by weight of cobalt exceeds 1.5%,

(ii) the content by weight of at least one of the other elements is greater than the limit specified in the foregoing table, or

(iii) the total content by weight of elements other than nickel plus cobalt exceeds 1%.';

(21) in Chapter, 76, for the Notes, the following Note shall be substituted, namely:

Note

In this Chapter the following expressions have the meanings hereby assigned to them:

(a) bars and rods:

Rolled, extruded, drawn or forged products, not in coils, which have a uniform solid cross-section along their whole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex polygons (including flattened circles , and modified rectangles , of which two opposite sides are convex arcs, the other two sides being straight, of equal length and parallel). Products, with a rectangular (including square), triangular or polygonal cross-section may have corners rounded along their whole length. The thickness of such products which have a rectangular (including modified rectangular ) cross-section exceeds one-tenth of the width. The expression also covers cast or sintered products, of the same forms and dimensions, which have been subsequently worked after production (otherwise than by simple trimming or de-scaling), provided that they have not thereby assumed the character of articles or products of other headings.

(b) profiles:

Rolled, extruded, drawn, forged or formed products, coiled or not, of a uniform cross-section along their whole length, which do not conform to any of the definitions of bars, rods, wire, plates, sheets, strip, foil, tubes or pipes. The expression also covers cast or sintered products, of the same forms, which have been subsequently worked after production (otherwise than by simple trimming or de-scaling), provided that they have not thereby assumed the character of articles or products of other headings.

(c) wire:

Rolled, extruded or drawn products, in coils, which have a uniform solid cross-section along their whole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex polygons (including flattened circles and modified rectangles , of which two opposite sides are convex arcs, the other two sides being straight, of equal length and parallel). Products with a rectangular (including square), triangular or polygonal cross-section may have corners rounded along their whole length. The thickness of such products which have a rectangular (including modified rectangular ) cross-section exceeds one-tenth of the width.

(d) plates, sheets, strip and foil:

Flat-surfaced products (other than the unwrought products of heading No. 76.01), coiled or not, of solid rectangular (other than square) cross-section with or without rounded corners (including modified rectangles of which two opposite sides are convex arcs, the other two sides being straight, of equal length and parallel) of a uniform thickness, which are:

-of rectangular (including square) shape with a thickness not exceeding one-tenth of the width.

-of a shape other than rectangular or square, of any size provided that they do not assume the character of articles or products of other headings.

Heading Nos. 76.06 and 76.07 apply, inter alia, to plates, sheets, strip and foil with patterns (for example, grooves, ribs, chequers, tears, buttons, lozenges) and to such products which have been perforated, corrugated, polished or coated, provided that they do not thereby assume the character of articles or products of other headings.

(e) tubes and pipes:

Hollow products, coiled or not, which have a uniform cross-section with only one enclosed void along their whole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex polygons, and which have a uniform wall thickness. Products with a rectangular (including square), equilateral triangular or regular convex polygonal cross-section, which may have corners rounded along their whole length, are also to be considered as tubes and pipes provided the inner and outer cross-sections are concentric and have the same form and orientation. Tubes and pipes of the foregoing cross-sections may be polished, coated, bent, threaded, drilled, waisted, expanded, cone-shaped or fitted with flanges, collars or rings.

In this Chapter the following expressions have the meanings hereby assigned to them:

(a) Aluminium, not alloyed:

Metal containing by weight at least 99% of aluminium, provided that the content by weight of any other element does not exceed the limit specified in the following table:

(1) Other elements are, for example, Cr, Cu, Mg, Mn, Ni, Zn

(2) Copper is permitted in a proportion greater than 0.1% but not more than 0.2%, provided that neither the chromium nor manganese content exceeds 0.05%

(b) Aluminium alloys:

Metallic substances in which aluminium predominates by weight over each of the other elements, provided that:

(i) the content by weight of at least one of the other elements or of iron plus silicon taken together is greater than the limit specified in the foregoing table;

(ii) the total content by weight of such other elements exceeds 1%. ;

(22) in Chapter 78, for the Note, the following Note shall be substituted, namely:

Note

In this Chapter the following expressions have the meanings hereby assigned to them:

(a) bars and rods:

Rolled, extruded, drawn or forged products, not in coils, which have a uniform solid cross-section along their whole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex polygons (including flattened circles , and modified rectangles , of which two opposite sides are convex arcs, the other two sides being straight, of equal length and parallel). Products, with a rectangular (including square), triangular or polygonal cross-section may have corners rounded along their whole length. The thickness of such products which have a rectangular (including modified rectangular ) cross-section exceeds one-tenth of the width. The expression also covers cast or sintered products, of the same forms and dimensions, which have been subsequently worked after production (otherwise than by simple trimming or de-scaling), provided that they have not thereby assumed the character of articles or products of other headings.

(b) profiles:

Rolled, extruded, drawn, forged or formed products, coiled or not, of a uniform cross-section along their whole length, which do not conform to any of the definitions of bars, rods, wire, plates, sheets, strip, foil, tubes or pipes. The expression also covers cast or sintered products, of the same forms, which have been subsequently worked after production (otherwise than by simple trimming or de-scaling), provided that they have not thereby assumed the character of articles or products of other headings.

(c) wire:

Rolled, extruded or drawn products, in coils, which have a uniform solid cross-section along their whole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex polygons (including flattened circles and modified rectangles , of which two opposite sides are convex arcs, the other two sides being straight, of equal length and parallel). Products with a rectangular (including square), triangular or polygonal cross-section may have corners rounded along their whole length. The thickness of such products which have a rectangular (including modified rectangular ) cross-section exceeds one-tenth of the width.

(d) plates, sheets, strip and foil:

Flat-surfaced products (other than the unwrought products of heading No. 78.01), coiled or not, of solid rectangular (other than square) cross-section with or without rounded corners (including modified rectangles of which two opposite sides are convex arcs, the other two sides being straight, of equal length and parallel) of a uniform thickness, which are:

-of rectangular (including square) shape with a thickness not exceeding one-tenth of the width,

-of a shape other than rectangular or square, of any size provided that they do not assume the character of articles or products of other headings.

Heading No. 78.04 applies, inter alia, to plates, sheets, strips and foil with patterns (for example, grooves, ribs, chequers, tears, buttons, lozenges) and to such products which have been perforated, corrugated, polished or coated, provided that they do not thereby assume the character of articles or products of other headings.

(e) tubes and pipes:

Hollow products, coiled or not, which have a uniform cross-section with only one enclosed void along their whole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex polygons, and which have a uniform wall thickness. Products with a rectangular (including square), equilateral triangular or regular convex polygonal cross-section, which may have corners rounded along their whole length, are also to be considered as tubes and pipes provided the inner and outer cross-sections are concentric and have the same form and orientation. Tubes and pipes of the foregoing cross-sections may be polished, coated, bent, threaded, drilled, waisted, expanded, cone-shaped or fitted with flanges, collars or rings.

In this Chapter the expressions refined lead means:

Metal containing by weight at least 99.9% of lead, provided that the content by weight of any other element does not exceed the limit specified in the following table:

(23) in Chapter 79, for the Notes, the following Note shall be substituted, namely:

Note

In this Chapter the following expressions have the meanings hereby assigned to them:

(a) bars and rods:

Rolled, extruded, drawn or forged products, not in coils, which have a uniform solid cross-section along their whole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex polygons (including flattened circles , and modified rectangles , of which two opposite sides are convex arcs, the other two sides being straight, of equal length and parallel). Products, with a rectangular (including square), triangular or polygonal cross-section may have corners rounded along their whole length. The thickness of such products which have a rectangular (including modified rectangular ) cross-section exceeds one-tenth of the width. The expression also covers cast or sintered products, of the same forms and dimensions, which have been subsequently worked after production (otherwise than by simple trimming or de-scaling), provided that they have not thereby assumed the character of articles or products of other headings.

(b) profiles:

Rolled, extruded, drawn, forged or formed products, coiled or not, of a uniform cross-section along their whole length, which do not conform to any of the definitions of bars, rods, wire, plates, sheets, strip, foil, tubes or pipes. The expression also covers cast or sintered products, of the same forms, which have been subsequently worked after production (otherwise than by simple trimming or de-scaling), provided that they have not thereby assumed the character of articles or products of other headings.

(c) wire:

Rolled, extruded or drawn products, in coils, which have a uniform solid cross-section along their whole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex polygons (including flattened circles and modified rectangles , of which two opposite sides are convex arcs, the other two sides being straight, of equal length and parallel). Products with a rectangular (including square), triangular or polygonal cross-section may have corners rounded along their whole length. The thickness of such products which have a rectangular (including modified rectangular ) cross-section exceeds one-tenth of the width.

(d) plates, sheets, strip and foil:

Flat-surfaced products (other than the unwrought products of heading No. 79.01), coiled or not, of solid rectangular (other than square) cross-section with or without rounded corners (including modified rectangles of which two opposite sides are convex arcs, the other two sides being straight, of equal length and parallel) of a uniform thickness, which are:

-of rectangular (including square) shape with a thickness not exceeding one-tenth of the width,

-of a shape other than rectangular or square, of any size provided that they do not assume the character of articles or products of other headings.

Heading No. 79.05 applies, inter alia, to plates, sheets, strips and foil with patterns (for example, grooves, ribs, chequers, tears, buttons, lozenges) and to such products which have been perforated, corrugated, polished or coated, provided that they do not thereby assume the character of articles or products of other headings.

(e) tubes and pipes:

Hollow products, coiled or not, which have a uniform cross-section with only one enclosed void along their whole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex polygons, and which have a uniform wall thickness. Products with a rectangular (including square), equilateral triangular or regular convex polygonal cross-section, which may have corners rounded along their whole length, are also to be considered as tubes and pipes provided the inner and outer cross-sections are concentric and have the same form and orientation. Tubes and pipes of the foregoing cross-sections may be polished, coated, bent, threaded, drilled, waisted, expanded, cone-shaped or fitted with flanges, collars or rings.

In this Chapter the following expressions have the meanings hereby assigned to them:

(a) Zinc, not alloyed:

Metal containing by weight at least 97.5% of zinc.

(b) Zinc alloys:

Metallic substances in which zinc predominates by weight over each of the other elements, provided that the total content by weight of such other elements exceed 2.5%.

(c) Zinc dust:

Dust obtained by condensation of zinc vapour, consisting of spherical particles which are finer than zinc powders. At least 80% by weight of the particles pass through a sieve with 63 micrometres (microns) mesh. It must contain at least 85% by weight of metallic zinc. ;

(24) in Chapter 80, below the title of the Chapter, the following Note shall be inserted, namely:

Note

In this Chapter the following expressions have the meanings hereby assigned to them:

(a) bars and rods:

Rolled, extruded, drawn or forged products, not in coils, which have a uniform solid cross-section along their whole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex polygons (including flattened circles , and modified rectangles , of which two opposite sides are convex arcs, the other two sides being straight, of equal length and parallel). Products, with a rectangular (including square), triangular or polygonal cross-section may have corners rounded along their whole length. The thickness of such products which have a rectangular (including modified rectangular ) cross-section exceeds one-tenth of the width. The expression also covers cast or sintered products, of the same forms and dimensions, which have been subsequently worked after production (otherwise than by simple trimming or de-scaling), provided that they have not thereby assumed the character of articles or products of other headings.

(b) profiles:

Rolled, extruded, drawn, forged or formed products, coiled or not, of a uniform cross-section along their whole length, which do not conform to any of the definitions of bars, rods, wire, plates, sheets, strip, foil, tubes or pipes. The expression also covers cast or sintered products, of the same forms, which have been subsequently worked after production (otherwise than by simple trimming or de-scaling), provided that they have not thereby assumed the character of articles or products of other headings.

(c) wire:

Rolled, extruded or drawn products, in coils which have a uniform solid cross-section along their whole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex polygons (including flattened circles and modified rectangles , of which two opposite sides are convex arcs, the other two sides being straight, of equal length and parallel). Products with a rectangular (including square), triangular or polygonal cross-section may have corners rounded along their whole length. The thickness of such products which have a rectangular (including modified rectangular ) cross-section exceeds one-tenth of the width.

(d) plates, sheets, strip and foil:

Flat-surfaced products (other than the unwrought products of heading No. 79.01), coiled or not, of solid rectangular (other than square) cross-section with or without rounded corners (including modified rectangles of which two opposite sides are convex arcs, the other two sides being straight, of equal length and parallel) of a uniform thickness, which are:

-of rectangular (including square) shape with a thickness not exceeding one-tenth of the width,

-of a shape other than rectangular or square, of any size provided that they do not assume the character of articles or products of other headings.

Heading Nos. 80.04 and 80.05 apply, inter alia, to plates, sheets, strips and foil with patterns (for example, grooves, ribs, chequers, tears, buttons, lozenges) and to such products which have been perforated, corrugated, polished or coated, provided that they do not thereby assume the character of articles or products of other headings.

(e) tubes and pipes:

Hollow products, coiled or not, which have a uniform cross-section with only one enclosed void along their whole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex polygons, and which have a uniform wall thickness. Products with a rectangular (including square), equilateral triangular or regular convex polygonal cross-section, which may have corners rounded along their whole length, are also to be considered as tubes and pipes provided the inner and outer cross-sections are concentric and have the same form and orientation. Tubes and pipes of the foregoing cross-sections may be polished, coated, bent, threaded, drilled, waisted, expanded, cone-shaped or fitted with flanges, collars or rings.

In this Chapter the following expressions have the meanings hereby assigned to them:

(a) Tin, not alloyed:

Metal containing by weight at least 99% of tin, provided that the content by weight of any bismuth or copper is less than the limit specified in the following table:

(b) Tin alloys:

Metallic substances in which tin predominates by weight over each of the other elements, provided that:

(i) the total content by weight of such other elements exceeds 1%; or

(ii) the content by weight of either bismuth or copper is equal to or greater than the limit specified in the foregoing table. ;

(25) in Chapter 81, below the title of the Chapter, the following Note shall be inserted, namely:

Note

Note 1 to Chapter 74, defining bars and rods , profiles , wire and plates, sheets, strip and foil applies, mutatis mutandis, to this Chapter. ;

(26) in Chapter 82, after Note 2, the following Note shall be inserted, namely:

3. Sets consisting of one or more knives of heading No. 82.11 and at least an equal number of articles of heading No. 82.15 are to be classified in heading No. 82.15. ;

(27) in Chapter 83, for the Notes, the following Notes shall be substituted, namely:

1. For the purposes of this Chapter, parts of base metal are to be classified with their parent articles. However, articles of iron and steel of heading No. 73.12, 73.15, 73.17, 73.18, or 73.20 or similar articles of other base metal (Chapters 74 to 76 and 78 to 81) are not to be taken as parts of articles of this Chapter.

2. For the purposes of heading No. 83.02, the word castors means those having a diameter (including, where appropriate, tyres) not exceeding 75 mm, or those having a diameter (including, where appropriate, tyres) exceeding 75 mm provided that the width of the wheel or tyre fitted thereto is less than 30 mm. ;

(28) in Section XVI,

(a) in Note 1,

(i) for item (h), the following item shall be substituted, namely:

(h) Drill Pipe (Heading No. 73.04) ;

(ii) in item (n), for the figures 82.02 , the figures 82.07 shall be substituted;

(b) after Note 5, the following Note shall be inserted, namely:

6. In respect of goods covered by this section, conversion of an article which is incomplete or unfinished but having the essential character of the complete or finished article (including blank , that is, an article, not ready for direct use, having the approximate shape or outline of the finished article or part, and which can only be used, other than in exceptional cases, for completion into the finished articles or part), into complete or finished article shall amount to manufacture . ;

(29) in Chapter 84,

(a) in Note 1, for item (d), the following item shall be substituted, namely:

(d) Articles of heading No. 73.21 or 73.22 or similar articles of other base metals (Chapters 74 to 76 or 78 to 81); ;

(b) for Note 6, the following Note shall be substituted, namely:

6. Heading No. 84.82 applies, inter alia, to polished steel balls, the maximum and minimum diametres of which do not differ from the nominal diameter by more than 1% or by more than 0.05 mm, whichever is less. Other steel balls are to be classified in heading No. 73.26. ;

(30) in Section XVIII,

(a) in Note 2 in item (d), for the figures 83.15 , the figures 83.06 shall be substituted;

(b) after Note 5, the following Note shall be inserted, namely:

6. In respect of goods covered by this Section, conversion of an article which is incomplete or unfinished but having the essential character of the complete or finished article (including blank , that is, an article, not ready for direct use, having the approximate shape or outline of the finished article or part, and which can only be used, other than in exceptional cases, for completion into the finished article or part), into complete or finished article shall amount to manufacture . ;

(31) in Chapter 87, in heading No. 87.16, in column (4), for the figures and abbreviation 15% , the figures and abbreviation 20% shall be substituted;

(32) in Chapter 89,

(a) for the word Note 1 , occurring below the title of the Chapter, the word Notes shall be substituted;

(b) the existing Note shall be numbered as Note 1 and after Note 1, as so numbered, the following Note shall be inserted, namely:

2. In heading No. 89.08, Light Displacement Tonnage (LDT) means LDT in metric tonnes as per Builder's Register LDT referred to in the Stability Book or the builder's certificate at the time of initial commissioning of the vessel or the floating structure:

Provided that in case of any change in the LDT, the highest of the LDT indicated in any of the documents referred to above shall be taken for the purpose of levy of duty. ;

(33) in Chapter 90, Note 1, in item (c), for the figures 83.15 , the figures 83.06 shall be substituted;

(34) in Chapter 94, in heading No. 94.03, in column (4), for the figures and abbreviation 25'% , the figures and abbreviation 30% shall be substituted.