Customs Authority for advance Rulings - CBEC's Customs Manual 2023 - Customs

12. Customs Authority for advance Rulings: 12.1 A scheme of advance rulings was incorporated in Chapter V-B of the Customs Act 1962 by the Finance Act of 1999 for issue of binding rulings in advance, on customs matters. Vide section 28E, the scheme is intended to provide certainty to intending investors. Statutory changes have been brought out to expand the ambit of authority over a period of time. 12.2 Section 28E states that, advance ruling means a written decision on any of the questions referred to in section 28H raised by the applicant in his application in respect of any goods prior to its importation or exportation; 12.3 Customs Authority for Advance Ruling means the Customs Authority for Advance Rulings appointed by the Board under section 28EA who shall be of the rank of Principal Commissioner of Customs or Commissioner of Customs. 12.4 Section 28F prescribes that there shall be Authority for advance rulings. - constituted under section 245-O of the Income-tax Act, 1961 and that shall be the Appellate Authority for deciding appeal under this Chapter and the said Appellate Authority shall exercise the jurisdiction, powers and authority conferred on it by or under this Act. Provided that the Member from the Indian Revenue Service (Customs and Central Excise), who is qualified to be a Member of the Board, shall be the revenue Member of the Appellate Authority for the purposes of this Act. 12.5 Under the scheme section 28H states the procedure for application: (1) An applicant desirous of obtaining an advance ruling under this Chapter may make an application in such form and in such manner as may be prescribed, stating the question on which the advance ruling is sought. (2) The question on which the advance ruling is sought shall be in respect of, - (a) classification of goods under the Customs Tariff Act, 1975 (51 of 1975); (b) applicability of a notification issued under sub-section (1) of section 25, having a bearing on the rate of duty; (c) the principles to be adopted for the purposes of determination of value of the goods under the provisions of this Act. (d) applicability of notifications issued in respect of tax or duties under this Act or the Customs Tariff Act, 1975 or any tax or duty chargeable under any other law for the time being in force in the same manner as duty of customs leviable under this Act or the Customs Tariff Act; (e) determination of origin of the goods in terms of the rules notified under the Customs Tariff Act, 1975 (51 of 1975) and matters relating thereto. (f) any other matter as the Central Government may, by notification, specify. (3) The application shall be made in quadruplicate and be accompanied by a fee of ten thousand rupees. (4) An applicant may withdraw his application within thirty days from the date of the application. (5) The applicant may be represented by any person resident in India who is authorised in this behalf. 12.6 As prescribed in section 28I, on receipt of an application, the Authority shall call for relevant records, examine the application and the records called for, and by order, either allow or reject the application. PROVIDED that the Authority shall not allow the application where the question raised in the application is already pending in the applicant's case before any officer of customs, the Appellate Tribunal or any Court or the same as in a matter already decided by the Appellate Tribunal or any Court. Provided further that no application shall be rejected under this sub-section unless an opportunity has been given to the applicant of being heard and that where the application is rejected, reasons for such rejection shall be given in the order. 12.7 Where an application is allowed under sub-section (2), the Authority shall, after examining such further material as may be placed before it by the applicant or obtained by the Authority, pronounce its advance ruling on the question specified in the application. On a request received from the applicant, the Authority shall, before pronouncing its advance ruling, provide an opportunity to the applicant of being heard, either in person or through a duly authorised representative. 12.8 The Authority shall pronounce its advance ruling in writing within three months of the receipt of application 12.9 Section 28J states the Applicability of advance ruling. (1) The advance ruling pronounced by the Authority under section 28-I shall be binding only - (a) on the applicant who had sought it; (b) in respect of any matter referred to in sub-section (2) of section 28H; (c) on the Principal Commissioner of Customs or Commissioner of Customs, and the customs authorities subordinate to him, in respect of the applicant. (2) The advance ruling referred to in sub-section (1) shall be binding as aforesaid unless there is a change in law or facts on the basis of which the advance ruling has been pronounced. 12.10 Section 28K states that Advance ruling to be void in certain circumstances (1) Where the Authority finds, on a representation made to it by the Principal Commissioner of Customs or Commissioner of Customs or other wise, that an advance ruling pronounced by it under sub-section (6) of section 28-I has been obtained by the applicant by fraud or misrepresentation of facts, it may, by order, declare such ruling to be void ab initio and thereupon all the provisions of this Act shall apply to the applicant as if such advance ruling had never been made. (2) A copy of the order made under sub-section (1) shall be sent to the applicant and the Principal Commissioner of Customs or Commissioner of Customs. 12.11 Section 28KA provides for Appeal in cases of Advance Rulings, which states that - (1) Any officer authorised by the Board, by notification, or the applicant may file an appeal to the Appellate Authority against any ruling or order passed by the Authority, within sixty days from the date of the communication of such ruling or order, in such form and manner as may be prescribed: Provided that where the Appellate Authority is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the period so specified, it may allow a further period of thirty days for filing such appeal. (2) The provisions of sections 28-I and 28J shall, mutatis mutandis, apply to the appeal under this section. 12.12 Section 28L of the Customs Act, 1962 defines the Powers of Authority or Appellate Authority (1) The Authority or Appellate Authority shall, for the purpose of exercising its powers regarding discovery and inspection, enforcing the attendance of any person and examining him on oath, issuing commissions and compelling production of books of account and other records, have all the powers of a civil court under the Code of Civil Procedure, 1908 (5 of 1908). (2) The Authority or Appellate Authority shall be deemed to be a civil court for the purposes of section 195, but not for the purposes of Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974), and every proceeding before the Authority or Appellate Authority shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purpose of section 196, of the Indian Penal Code (45 of 1860). [Substituted/ inserted by Finance Act, 2017 (Act 7 of 2017) dt. 31-3-2017; Finance Act, 2018 (Act 13 of 2018) dt. 29-3-2018.]