Circular No. 738

Finance Acts, 1964 & 1965 - Part Iv/part III of First Schedule l Rebate of TAX for Manufacture/ Production of Specified Industries

What this is

Circular No. 738 was issued by the Central Board of Direct Taxes on 25 March 1996. Its subject is Finance Acts, 1964 & 1965 - Part Iv/part III of First Schedule l Rebate of TAX for Manufacture/ Production of Specified Industries.

What it does

Carries two departmental rulings on the rebate for specified industries under Part IV of the First Schedule to the Finance Act, 1964 and Part III of the First Schedule to the Finance Act, 1965. Industrial furnaces and industrial oil burning equipment are held not to be covered by Part IV of the First Schedule to the Finance Act, 1964. The production of 'semis' is held not to fall within the item 'aluminium, copper, lead and zinc (Metals)' in Part IV of the 1964 Schedule or Part III of the 1965 Schedule.

Why it was issued

The text does not state a reason; both rulings answer coverage questions on the industry list in those Finance Act Schedules.

Who it reaches

Manufacturers of industrial furnaces and industrial oil burning equipment
Producers of semis in aluminium, copper, lead and zinc
Assessing Officers applying the priority-industry rebate under the 1964 and 1965 Finance Acts

The instrument, as the Board published it

The words below are the department’s own, reproduced from its published text. Where the department’s copy carried a publisher’s notes after the instrument, those are not reproduced.

FINANCE ACTS, 1964 & 1965 - PART IV/PART III OF FIRST SCHEDULE l REBATE OF TAX FOR MANUFACTURE/ PRODUCTION OF SPECIFIED INDUSTRIES
1484. Industrial furnaces/industrial oil burning equipment - Whether covered by Part IV of First Schedule to Finance Act, 1964
The "industrial furnaces" and "industrial oil burning equipment" are not covered by Part IV of the First Schedule to the Finance Act, 1964.
Letter : F. No. 1(193)/65/TPL, dated 24-9-1965.
1485. Production of semis whether covered by Part IV of First Schedule to Finance Act, 1964/Part III of First Schedule to Finance Act, 1965
The production of "semis" is not covered under item "(2) aluminium, copper, lead and zinc (Metals)" in Part IV of the First Schedule to the Finance Act, 1964 and Part III of the First Schedule to the Finance Act, 1965.
Letter : F. No. 1(205)/65/TPL, dated 23-9-1965.

What to watch

Though the record is headed as a 1996 circular, the text is two departmental letters - F. No. 1(193)/65/TPL dated 24-9-1965 and F. No. 1(205)/65/TPL dated 23-9-1965 - and the notes are written from them.
Both are exclusions, not concessions: they tell you what does not qualify.
The rebate they construe is that given by the Finance Acts of 1964 and 1965; the Schedules they turn on are not the current law.
Neither letter defines 'semis'; the ruling is confined to the metals item quoted.

Where you meet it

Only in old assessments or appeals turning on the specified-industry rebate under the First Schedules to the Finance Acts, 1964 and 1965.

← Circular No. 740 · Circular No. 739 →

A circular binds the department, not you and not a court. The Board issues a circular to its own officers. An assessee may hold the department to a circular that helps him; the department cannot hold an assessee to one that hurts him, and the Tribunal and the courts decide the law for themselves.

Source: the Income Tax Department’s own published text — its page for this instrument.