Page 37 - ELT_1st August 2020_Vol 373_Part 3

2020 ] ADVANCE RULING UNDER CUSTOMS ACT, 1962 A75

ADVANCE RULING UNDER CUSTOMS ACT, 1962
By
CS Dr. M. Govindarajan
PRACTICING COMPANY SECRETARY

Introduction
The legal provisions of Advance Rulings were introduced through the
Finance Acts of 1998, 1999 and 2003. The Scheme of Advance Rulings has as-
sumed special significance in the context of greater emphasis on FDI. Advance
Rulings afford far greater certainty to foreign investors in respect of their pro-
spective Indirect Tax liabilities.
Advance Ruling
Section 28E(b) of Customs Act, 1962 defines the expression ‘Advance
Ruling’ as 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 im-
portation or exportation.
Questions on which Advance Ruling can be sought
Section 28H provides the questions on which advance ruling can be
sought -
• classification of goods under the Customs Tariff Act, 1975;
• applicability of a notification issued under sub-section (1) of Section
25, (exemption) bearing on the rate of duty;
• the principles to be adopted for the purposes of determination of
value of the goods under the provisions of this Act;
• applicability of notifications issued in respect of tax or duties under
this Act or the Customs Tariff Act, 1975 or any tax or duty chargea-
ble 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;
• determination of origin of the goods in terms of the rules notified
under the Customs Tariff Act, 1975 and matters relating thereto.
• any other matter as the Central Government may, by notification,
specify.

Who can file application for advance ruling?
The following persons may apply for advance ruling -
• holding a valid Importer-Exporter Code Number granted under
Section 7 of Foreign Trade (Development and Regulation) Act, 1992;
• exporting any goods to India; or
• with a justifiable cause to the satisfaction of the Authority.

EXCISE LAW TIMES  1st August 2020  37