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Dated: 19.06.23
Filing with Customs Authority for Advance Ruling
The statutory provisions relating to advance rulings in matters relating to Customs are contained in Chapter V-B of the Customs Act, 1962 . The said chapter V-B was substantially amended vide Finance Act, 2018.
The Finance Act, 2018, inter alia, inserted a new section 28EA relating to ‘Customs Authority for Advance Rulings’, which empowers the Central Board of Indirect Taxes and Customs (CBIC) to appoint officers of the rank of Principal Commissioner of Customs or Commissioner of Customs as Customs Authority for Advance Rulings by way of notification.
The amended section 28M provided that the Customs Authority for Advance Rulings shall follow such procedure as may be prescribed. Pursuant thereto, CBIC has notified Customs Authority for Advance Rulings Regulations, Notification No. 01/2021-Customs (N.T.) dated 04.01.2021 as amended vide Notification No,. 63/2022-Customs (N.T.) dated 20.07.2022. This notification has superseded the earlier Authority for Advance Rulings (Customs, Central Excise and Service Tax) Procedure Regulations, 2005, which has laid down provisions regarding the jurisdiction, application form and procedure, in relation to Customs Advance Rulings under the Act.
CUSTOMS AUTHORITY FOR ADVANCE RULINGS
In exercise of the aforesaid powers, CBIC vide notification No.102/2020 – Customs (N.T.) dated 23.10.2020 has notified two posts of Principal Commissioner/Commissioner (Customs Authority for Advance Rulings) at New Delhi and Mumbai.
JURISDICTION
The jurisdiction of the two authorities shall be determined in terms of the address provided by the applicant while making the application, as detailed below.
| S. No. | Customs Authority for Advance Rulings. | Jurisdiction to hear applications for Advance Rulings (State-wise and Union territory-wise, etc.). |
| 1 | Customs Authority for Advance Rulings, Delhi. | Jammu & Kashmir, Himachal Pradesh, Punjab, Chandigarh, Uttar Pradesh, Delhi, Haryana, Uttarakhand, Bihar, Jharkhand, West Bengal, Andaman and Nicobar Islands, Sikkim, Odisha, Rajasthan, Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura and Ladakh. Applicants providing an address other than that within the territory of India. |
| 2 | Customs Authority for Advance Rulings, Mumbai. | Andhra Pradesh, Telangana, Karnataka, Kerala, Lakshadweep, Puducherry, Tamil Nadu, Gujarat, Dadra and Nagar Haveli and Daman and Diu, Maharashtra, Goa, Madhya Pradesh and Chhattisgarh. |
WHO CAN SEEK ADVANCE RULING
In terms of section 28E (c), an applicant for seeking advance ruling can be any person:(i) holding a valid Importer-exporter Code Number granted under section 7 of the Foreign Trade (Development and Regulation) Act, 1992; or(ii) exporting any goods to India; or(iii) with a justifiable cause to the satisfaction of the authority.
ON WHAT QUESTIONS CAN ADVANCE RULING BE SOUGHT
The questions on which advance rulings can be sought are specified in section 28H as follows:
(a) classification of goods under the Customs Tariff Act, 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 and matters relating thereto;
(f) any other matter as the Central Government may, by notification, specify.
HOWEVER, proviso to section 28 I (2) ibid provides that the authority shall not allow the application where the question raised in the application is –
(a) already pending in the applicant’s case before any officer of customs, the Appellate Tribunal or any Court; or
(b) the same as in a matter already decided by the Appellate Tribunal or any Court.
WHAT IS THE APPLICABILITY OF THE ADVANCE RULING
Section 28 J ibid provides that the advance ruling pronounced by the authority 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.
PROCEDURE FOR MAKING APPLICATION FOR ADVANCE RULING
In accordance with the provisions of Chapter V-B of the Customs Act, 1962 read with the Customs Authority for Advance Rulings Regulations, 2021, an application for advance ruling shall be made before the jurisdictional authority in Form CAAR-1.
PROCEDURE ON RECEIPT OF APPLICATION FOR ADVANCE RULING
The procedure on receipt of the application for advance ruling are detailed in section 28-I ibid and regulation 8 of the Customs Authority for Advance Rulings Regulations, 2021.
Section 28 I ibid: Procedure on receipt of application:-
(1) On receipt of an application, the Authority shall cause a copy thereof to be forwarded to the 1 [Principal Commissioner of Customs or Commissioner of Customs] and, if necessary, call upon him to furnish the relevant records :
Provided that where any records have been called for by the Authority in any case, such records shall, as soon as possible, be returned to the 2 [Principal Commissioner of Customs or Commissioner of Customs].
(2) The Authority may, after examining the application and the records called for, by order, either allow or reject the application :
Provided that the Authority shall not allow the application 3 [***] where the question raised in the application is –
(a) already pending in the applicant’s case before any officer of customs, the Appellate Tribunal or any Court;
(b) 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:
Provided also that where the application is rejected, reasons for such rejection shall be given in the order.
(3) A copy of every order made under sub-section (2) shall be sent to the applicant and to the 4 [Principal Commissioner of Customs or Commissioner of Customs].
(4) 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.
(5) 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.
Explanation . – For the purposes of this sub-section,”authorised representative” shall have the meaning assigned to it in sub-section (2) of section 146A.
(6) The Authority shall pronounce its advance ruling in writing within 5 [three months] of the receipt of application.- Omitted by S-92 of Finance Act 2022 (6 of 2022).
(7) A copy of the advance ruling pronounced by the Authority, duly signed 6[***] and certified in the prescribed manner shall be sent to the applicant and to the 7 [Principal Commissioner of Customs or Commissioner of Customs], as soon as may be, after such pronouncement.
Regulation 8 CAAR: Procedure on receipt of application.
(2) The application shall be scrutinised by the officer authorised by the Secretary for that purpose for any deficiency or defect and any deficiency or defect noticed in the application or annexures thereof shall be communicated to the applicant at the earliest.
(3) The applicant shall be required to rectify the deficiency or defect within the time granted by the Secretary and such application shall be deemed to have been received on the date when it is re-submitted after removal of such deficiency or defect, for the purposes of sub-section (6) of section 28-I.
(4) 3[* * * *]
(5) When an application is free from any defect or deficiency, 4[a serial number shall be allotted to the said application.]
(6) In case the defect or deficiency is not removed or made good within the time granted under 5[sub-regulation (3)],the application shall be placed before the Authority for appropriate orders.
(7) On allotment of serial number to an application under 6[sub-regulation (5)], a copy of the application shall be forwarded to the concerned Principal Commissioner or Commissioner of Customs for furnishing relevant records with comments, if any.
(8) On receipt of the relevant records or comments from the Principal Commissioner or Commissioner concerned under 7[sub-regulation (7)], or after expiry of two weeks or such further period as may be allowed by the Authority, the application shall be placed before the Authority for passing orders in terms of sub-section (2) of section 28-I.
(9) In a case where the Authority considers that prima facie the application is liable for rejection, a notice shall be issued to the applicant indicating the reasons therefor together with the comments, if any, of the Principal Commissioner or Commissioner concerned, giving an opportunity to the applicant of being heard in person or through an authorised representative and a copy of the notice shall be endorsed to the Principal Commissioner or Commissioner concerned.
(10) On the date fixed for hearing or such other date to which the case is adjourned, the Authority may pass an order either allowing or rejecting the application under sub-
TIME LIMIT FOR DELIVERING ADVANCE RULING AND PERIOD OF VALIDITY THEREOF
The Customs Advance Ruling Authority is required to pronounce its Rulings within three months of the date of receipt of application – complete in all manner and after removal of deficiency, if any. An advance ruling shall remain valid for three years or till there is a change in law or facts on the basis of which the advance ruling has been pronounced, whichever is earlier.- Omitted by S-92 of Finance Act 2022 (6 of 2022).
Source: CBIC, New Delhi
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