About the Authority
To facilitate foreign investment into the country a number of steps have been taken by Government of India in the past. Setting up an Authority for Advance Rulings (Central Excise, Customs & Service Tax) to give binding rulings, in advance, on Central Excise, Customs and Service Tax matters pertaining to an investment venture in India is one such measure. The legal provisions of Advance Rulings were introduced through the Finance Acts of 1998, 1999 and 2003. The scheme of Advance Rulings has assumed special significance in the context of greater emphasis on FDI. Advance Rulings afford far greater certainty to foreign investors in respect of their prospective indirect tax liabilities.
2. Vide Finance Act, 2017, with a view to promote ease of doing business, the Government of India has merged the Authority for Advance Rulings (Central Excise, Customs & Service Tax) with Authority for Advance Rulings (Income Tax).
3. In finance Act, 2018 it is proposed to constitute Customs Authority for Advance rulings under Section 28 EA of the Customs Act, 1962 and the existing Authority for Advance Rulings (Constituted under Section 245-O of the Income tax Act, 1961) shall cease to Act as an Authority for Advance Rulings , and shall Act as an Appellate Authority for the purpose of Chapter V of the Custom Act, 1962 from the date of appointment of Customs Authority for Advance Rulings under Section 28EA of the Customs Act, 1962.
4. Presently the Authority for Advance Rulings is dealing with Customs related applications and pending cases of Central Excise & Service tax.
5. The details regarding scheme of advance rulings in the GST regime may be obtained from the website http://gstcouncil.gov.in/advance-rulings
6. The process of obtaining a ruling is simple, inexpensive and transparent (only Rs.10,000/- have to be deposited through a Demand Draft with each application). The process of obtaining a ruling is highly expeditious as the Authority is statutorily required to pronounce the ruling within 90 days of receipt of an application. Rulings are pronounced after providing an opportunity of being heard by the Authority and in pursuance of other accepted judicial norms. Advance Rulings pronounced by the Authority are binding on the applicant who had sought it, in respect of any matter referred to in sub-section (2) of section 28-H and on the Principal Commissioner of Customs or Commissioner of Customs, and the customs authorities subordinate to him, in respect of the applicant and hence rule out possibilities of disputes and litigation.
7. The scheme of Advance Rulings allows the following categories of applicants to seek an advance ruling :-
(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,.
8. QUESTIONS ON WHICH ADVANCE RULING CAN BE SOUGHT:-
(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.
9. However, an advance ruling cannot be sought where the question -
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
10. Authority for Advance Rulings is a high level quasi judicial body headed by retired judge of the Supreme Court of India. Besides the Chairman, there are two Members (of Additional Secretary rank) - who have wide experience in technical and legal matters. At present Mrs. Justice Ranjana P. Desai is the Chairman and Member (Customs) is yet to be appointed .
11. Office of the Authority is located on 5th Floor, NDMC Building, Yashwant Place, Satya Marg, Chanakyapuri, New Delhi - 110 021. Full details relating to the Authority's functioning may be accessed on the website: http://www.cbic.gov.in/htdocs-cbec/aar/aar Any queries can be sent to the e-mail address i.e. firstname.lastname@example.org
12. The following officers can be contacted during office hours for further information:-
Note: In case a brochure relating to the Authority's functions is required, request can be e-mailed at the above address or addressed to any one of the afore-mentioned officers.