Customs Act, 1962- Chapter V-B- Advance Rulings

[i][Chapter V-B

ADVANCE RULINGS

28-E. Definitions.

28-E. Definitions.—In this Chapter, unless the context otherwise requires,—

(a) [ii][* * *]

[iii][(b) “advance ruling” means a written decision on any of the questions referred to in Section 28-H raised by the applicant in his application in respect of any goods prior to its importation or exportation;]

[iv][(ba) “Appellate Authority” means the Authority for Advance Rulings constituted under Section 245-O of the Income Tax Act, 1961 (43 of 1961);]

[v][(c) “applicant” means any person,—

(i) holding a valid Importer-exporter Code Number granted under Section 7 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992); or

(ii) exporting any goods to India; or

(iii) with a justifiable cause to the satisfaction of the Authority,

who makes an application for advance ruling under Section 28-H;]

(d) “application” means an application made to the Authority under sub-section (1) of Section 28-H;

[vi][(e) “Authority” means the Customs Authority for Advance Rulings appointed under Section 28-EA;

(f) “Chairperson” means the Chairperson of the [vii][Appellate Authority];

(g) “Member” means a Member of the [viii][Appellate Authority] and includes the Chairperson; and

[ix][(h) “non-resident”, “Indian company” and “foreign company” have the meanings respectively assigned to them in clauses (30), (26) and (23-A) of Section 2 of the Income Tax Act, 1961 (43 of 1961).]

28-EA. Customs Authority for Advance Rulings.

[x][28-EA. Customs Authority for Advance Rulings.—(1) The Board may, for the purposes of giving advance rulings under this Act, by notification, appoint an officer of the rank of Principal Commissioner of Customs or Commissioner of Customs to function as a Customs Authority for Advance Rulings:

Provided that till the date of appointment of the Customs Authority for Advance Rulings, the existing Authority for Advance Rulings constituted under Section 245-O of the Income Tax Act, 1961 (43 of 1961) shall continue to be the Authority for giving advance rulings for the purposes of this Act.

(2) The offices of the Authority may be established in New Delhi and at such other places, as the Board may deem fit.

(3) Subject to the provisions of this Act, the Authority shall exercise the powers and authority conferred on it by or under this Act.]

28-F. Authority for Advance Rulings.

[xi][28-F. Authority for Advance Rulings.—(1) Subject to the provisions of this Act, the Authority for Advance Rulings constituted under Section 245-O of the Income Tax Act, 1961 (43 of 1961) shall be [xii][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 [xiii][Appellate Authority] for the purposes of this Act.

(2) On and from the date on which the Finance Bill, 2017 receives the assent of the President, every application and proceeding pending before the erstwhile Authority for Advance Rulings (Central Excise, Customs and Service Tax) shall stand transferred to the Authority from the stage at which such application or proceeding stood as on the date of such assent.]

[xiv][(3) On and from the date of appointment of the Customs Authority for Advance Rulings, every application and proceeding pending before the erstwhile Authority for Advance Rulings shall stand transferred to the Authority from the stage at which such application or proceeding stood as on the date of such appointment.]

28-G. Vacancies, etc., not to invalidate proceedings.

28-G. Vacancies, etc., not to invalidate proceedings.—[xv][* * *]

28-H. Application for advance ruling.

28-H. Application for advance ruling.—(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.

[xvi][(d) applicability of notifications issued in respect of tax or duties under this Act or the Customs Tariff Act, 1975 (51 of 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;]

[xvii][(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.]

[xviii][(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 [xix][ten thousand rupees].

(4) An applicant may withdraw his application within thirty days from the date of the application.

[xx][(5) The applicant may be represented by any person resident in India who is authorised in this behalf.

Explanation.—For the purposes of this sub-section “resident” shall have the same meaning as assigned to it in clause (42) of Section 2 of the Income Tax Act, 1961 (43 of 1961).]

28-I. Procedure on receipt of application.

28-I. Procedure on receipt of application.—(1) On receipt of an application, the Authority shall cause a copy thereof to be forwarded to the 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 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 [xxi][* * *] 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 the 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 146-A.

(6) The Authority shall pronounce its advance ruling in writing within [xxii][three months] of the receipt of application.

(7) A copy of the advance ruling pronounced by the Authority, duly signed by the Members and certified in the prescribed manner shall be sent to the applicant and to the Commissioner of Customs, as soon as may be, after such pronouncement.

28-J. Applicability of advance ruling.

28-J. 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 28-H;

(c) on the 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.

28-K. Advance ruling to be void in certain circumstances.

28-K. Advance ruling to be void in certain circumstances.—(1) Where the Authority finds, on a representation made to it by the Commissioner of Customs or otherwise, 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 [xxiii][* * *] to the applicant as if such advance ruling had never been made.

[xxiv][Provided that in computing the period of two years referred to in clause (a) of sub-section (1) of Section 28, or five years referred to in sub-section (4) thereof, for service of notice for recovery of any duty not levied, short-levied, not paid or short-paid on account of the advance ruling, the period beginning with the date of such advance ruling and ending with the date of the order under this sub-section shall be excluded.]

(2) A copy of the order made under sub-section (1) shall be sent to the applicant and the Commissioner of Customs.

28-KA. Appeal.

[xxv][28-KA. Appeal.—(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 28-J shall, mutatis mutandis, apply to the appeal under this section.]

28-L. Powers of Authority or Appellate Authority.

28-L. Powers of [xxvi][Authority or Appellate Authority].—(1) The [xxvii][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 [xxviii][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 [xxix][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).

28-M. Procedure for Authority and Appellate Authority.

[xxx][28-M. Procedure for Authority and Appellate Authority.—(1) The Authority shall follow such procedure as may be prescribed.

(2) The Appellate Authority shall, subject to the provisions of this Chapter, have power to regulate its own procedure in all matters arising out of the exercise of its powers and authority under this Act.]

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