News Flash
  • Presidential Award of Appreciation Certificates and Medals announced on the occasion of Republic Day, 2023 Click here
  • Revised Annual Calendar of Departmental Examinations for The Year 2022-23 Click here
  • Departmental Examination: Confirmation for Inspectors of Central Tax scheduled in February,2023 now postponed. The examination re-scheduled from 21.03.2023 to 24.03.2023.
  • WCO Certificates of Merit - International Customs Day 2023. Click here
  • SECURITY ADVISORY -reg. Click here
  • Inviting Nominations for the post of Inspector and Sub-Inspector in National Investigation Agency on deputation basis -reg. Click here| Forwarding Letter
  • Cyber Security Guidelines - reg. Click here
  • Draft Seniority list of Joint Commissioner of Customs & Indirect Taxes appointed/promoted against the vacancy year 2015-16. Click here
  • Press Release regarding declaration of date of online written examination of Customs Brokers Licensing Examination, 2023 under CBLR, 2018. Click here
  • Extension of Closing date of Notice Inviting applications for the post of Additional Assistant Director in various Directorates under CBIC on a deputation basis- Reg. Click here
  • Filling up of posts of Staff Car Driver in Enforcement Directorate on deputation basis-Reg. Click here| Enclosure
  • Recruitment against Sports Quota in the Central Tax & Customs Department Pune-2022-Corrigendum-reg. Click here
  • Customs (Assistance in Value Declaration of Identified Imported Goods) Rules, 2023 Rules | Circular
  • Publication of All Non-Tariff Measures (NTMs) along with Centralized Control Numbers (CCNs) in compliance with the 6th NCTF meetingClick Here
  • Notification issued to assign powers of Superintendent of Central tax to Additional Assistant Directors in DGGI, DGGST and DG Audit. Click here
  • Notification for Departmental Examination for promotion of Tax Assistants to the Grade of Executive Assistants of Central Taxes & Customs to be held in the month of March, 2023 Click here
  • Annual General Transfer 2023. Click here
  • General Election to the Legislative Assemblies of Gujarat and Himachal Pradesh, 2022- Last visit of EOs for preparation of Scrutiny Reports etc.-Reg. Click here
  • CBIC has notified Rules of Origin of India-Australia Economic Cooperation and Trade Agreement Click here for rules
  • Request for Expression of Interest (EOIs) for Empanelment of CAs/ICWAs for conducting Special Audit under Section 66 of the CGST Act, 2017 at CGST Audit-1 Commissionerate, Delhi Click here
  • Filling up of the post of Administrative Officer in the Customs & Central Excise Settlement Commission, Additional Bench, Mumbai - Regarding Click here
  • Press Release on decisions of 48th GST Council. Click here
  • International Customs Day Celebration 2023: Seeking nominations for the award of WCO Certificates of Merit Click here | Proforma
  • Marks of Deptt. Exam. for Inspectors of Central Tax held in 02.08.2022 to 05.08.2022 declared. Nodal Officers (Exam) may download marks-sheet along with forwarding letter from their e-Mail ID. Click here
  • Notification issued to extend the due date for furnishing FORM GSTR-1 for November 2022 for registered persons whose principal place of business is in certain districts of Tamil Nadu. Click here
  • Notification for Departmental Examination for promotion of Ministerial Officers to the Grade of Inspectors of Central Taxes, Inspectors of Customs (Preventive Officers) & Inspectors of Customs (Examiners) to be held in the month of February 2023. It also contains the Schedule, Syllabus, and Instructions for Examination along with the format (in Annexure II) for requesting Question Papers. The Notification can be viewed through this link - Click here
  • CBIC has issued Postal Export (Electronic Declaration and Processing) Regulations, 2022 in furtherance of ease of doing business Notification No. 103/2022-Customs (NT)|Notification No. 104/2022-Customs (NT)|Circular No. 25/2022
  • Recruitment against Sports Quota in the Central Tax & Customs Department Pune Click here
  • CGL Examination 2020- Final Zone Allocation of Inspector (CGST).   |   Annexure-I   |  
  • Master’s Degree Programme in Public Finance at the National Graduate Institute of Policy Studies (GRIPS) in Tokyo, Japan (2023-24).   |   Nomination Form   |   Proforma   |   Annexure-I   |   OM   |  
  • Circular on Deputation-Willingness for the post of Inspector at NACIN, Faridabad Click here
  • DGTS is organizing an open house meeting with interested communication agencies for” Selection of Communication Agency for CBIC's Taxpayer outreach programs on 01st December, 2022 Click here
  • CGL Examination 2020- Final Zone Allocation of Inspector (PO & Examiner) and TA.   |   Annexure-I   |   Annexure-II   |   Annexure-III   |  
  • Manner of processing and sanction of IGST refunds, withheld in terms of clause (c) of sub-rule (4) of rule 96, transmitted to the jurisdictional GST authorities under sub-rule (5A) of rule 96 of the CGST Rules, 2017 Click here
  • Departmental Examination for promotion to the grade of Tax Assistant in Directorate Cadre (CCA DGPM) of CBIC for the year 2022-23 Click here
  • Stenographer Examination 2020- Final Zone AllocationClick here | Annexture I | Annexture II
  • CBIC issued notifications to empower the Competition Commission of India to handle anti-profiteering cases under CGST Act, 2017 with effect from 01.12.2022 Click here
  • Filling up of posts in the Competition Commission of India and in CBN on deputation basis-Reg. Click here
View All

Hon'ble Mr.Justice Syed Shah Mohammad Quadri (Chairman)

Mr.Somnath Pal (Member)

Dr.B.A.Agrawal (Member)

Ruling No. AAR/28(Cus)/2006

in

Application No.AAR/02(Cus)/2006

 

Applicant                                                                       Mr. Akash Jain,

                                                                                    130, Rishabh Vihar

                                                                                    Delhi - 110092

 

Commissioner concerned                                               Commissioner of Customs(Prev.)

                                                                                    Amritsar

 

                                                                                    Commissioner of Customs (Prev.)

                                                                                    Lucknow

                                                                                   

Present for the Applicant                                                Mr. Kamal Mehta, Advocate

                                                                                               

                                                                                   

Present for the Commissioner                                         Shri A.K. Roy, Joint CDR

concerned                                                                     CESTAT, New Delhi

 

Shri Sanjay Saran, Addl. Commissioner, Amritsar

 

Shri Gaurav Kumar, Jt. Commissioner, Lucknow

 

 

R U L I N G

 

( By Mr. Somnath Pal, Member )

 

 

            The applicant, who is setting up a joint venture with non-resident M/s Uniexcel Ltd., Far East International Plaza, Room No. 1206, No. 83, Loup Shah Guan Rd., Changning District New Town Centre, Shanghai, China-200336, has filed this application seeking advance ruling on three questions.  In Annexure-I to the application, the applicant has stated that the non-resident is interested in setting up a knitting/textile unit in India and for this purpose he is interested in having a joint venture with the applicant who is a resident in India.  The proposed unit requires consumption of Wool as raw material and therefore they are keen in taking the benefit of Customs Notification Nos. 38/96 and 63/94 for importing duty free wool from China from Gunji in Pithoragarh, Uttaranchal or Village Namgaya Shipkila in Kinnaur District of H.P.   The unit will be set up in Baddi, H.P. or in Haryana with an estimated investment of US $ 2 millions in machinery.

 

            In Annexure-II to the application, the applicant has submitted that import of wool is allowed under OGL (Open General Licence).  By Notification No. 63/94, Government of India has set up Gunji in Uttaranchal and Village Namgaya Shipkila in H.P. as Customs Notified Stations for import/export of permitted goods or services.   By Notification No. 38/96, Government of India has exempted from import duty (both basic plus CVD) on wool if imported from these stations from China.  The applicant has enclosed copies of these two notifications alongwith their application.  The applicant has further stated that the plain reading of the two notifications does not put any limitations on the class of persons who can import through these stations nor does it put any limitation on the use of goods so imported for taking benefit of duty exemption.  In the light of the above the applicant has raised the following three questions for getting advance rulings thereon :-
 

            "(a)      Are we allowed to import through these stations in view of notification no. 63/94?

(b)                           If we import wool from these stations, i.e. Gunji in Uttranchal or Village Namgaya Shipkila in H.P., will we get the benefit of duty free import under notification no. 38/96?

(c)                           Is there any limitation under these notification regarding the actual user of the goods so imported.  Means, if we import duty free wool from these station, can we sell the surplus in open market, if so desired?"

 

2.         In his comments, the Commissioner has however, contended that the benefit of exemption Notification No. 38/96 is not admissible to the applicant who intends to import the wool as raw material for a knitting/textile unit.  In support of his submission, the Commissioner has referred to para 2.13 of the Foreign Trade Policy, 2004-09, ITC Public Notice No. 33/92-97 dated 17.7.92 and ITC Public Notice No. 5/92-97(PN) dated 20.7.92 regulating the border trade across Indo-China border, Office Memorandum F.No. 2/9/2005-FT(NEA) dated 2.5.2005 clarifying that as per the MOU signed with China, the border trade is meant only for local residents of border on both the sides and permitting the import and export of identified items, Board's letter F.No. 554/02/2005 - L.C. dated 12.8.2005 clarifying that India's trade with China has been allowed as border trade and is meant only for Tribal communities living on either side of the border.  It has therefore been submitted by the Commissioner that the duty free  import of wool from China through Namgaya-Shipkila-Shipki Jui Jiuba land route is permissible only for the use of local residents and not for the commercial use of a manufacturing concern or for the trade in open market.
 

3.         In the course of the hearing before the Authority the Ld. Counsel appearing on behalf of the applicant, after some initial submissions, fairly conceded that the question (a) raised in the application is not covered by any of the clauses of Section 28H of the Customs Act, 1962 and hence this question was dropped by him.  Therefore, the questions (b) & (c) alone remain for consideration of this Authority.  They are to be answered only with reference to the exemption Notification No. 38/96 dated 23.7.1996.
           

4.         We observe that the questions (b) & (c) are, in essence, to be treated as seeking applicability in general terms of the exemption Notification 38/96.  The comments submitted by and on behalf of the Commissioner are primarily on the issue of whether the applicant is end to import through the notified Land Customs Stations and along the specific land routes from China.  He has then read this aspect into the exemption Notification No. 38/96 without touching the question of general applicability of this Notification per se.  Since the applicant has agreed and rightly so, to drop the question (a) being outside the jurisdiction of this Authority, we do not see any necessity to express our views on the submissions of the Commissioner.
 

5.         On a plain reading of the exemption Notification No. 38/96, it is clear that this has been issued by the Central Government in exercise of the powers granted to it under Section 25(1) of the Customs Act, 1962, exempting the goods specified in column (2) of the Table annexed to the Notification and falling within the First Schedule or the Second Schedule, as the case may be, of the Customs Tariff Act, 1975, from the whole of the duty of customs leviable thereon under the said Customs Tariff Act, which is specified in the corresponding entry in column (3) of the said Table.  The relevant entry under the heading "description of goods" given in column (2) of the Table to which the applicant has made a reference is at (g) against Serial No. 1 of the said Table.  This reads as follows :-
 

"(g)            Goat skin, sheep skin, horses, goats, sheep, wool, butter, common salt, raw silk, yak tail, yak hair, china clay, borax, szaibelyite and goat cashmere, when imported into India from China through Gunji in Pithoragarh district of Uttar Pradesh along the Gunji Pulan (Tibet) land route or through village Namgaya Shipkila in Kinnaur district of Himachal Pradesh along the Namgaya-Shipkila-Shipki Jui Jiuba land route."

 

            Under column (3) of the Table against the Sl. No.1, the following remark appears :-

 

"Duty of customs leviable thereon under  the First Schedule to the Customs Tariff Act, 1975 and Additional duty leviable thereon under Section 3 of the said Act."

 

As can be seen from the above, 'wool' is one of the specified goods which has been exempted from duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 and also from additional duty leviable thereon under Section 3 of the said Act, when imported into India from China through Gunji in Pithoragarh District of Uttar Pradesh along the Gunji Pulan (Tibet) land route or through Village Namgaya Shipkila in Kinnaur District of H.P. along the Namgaya - Shipkila - Shipki - Jui Juiba land route.  No other condition has been laid down in so far as (g) in column (2) of the Table is concerned.  The Central Government has been given the power to issue general exemption by notification under Section 25(1) of the Customs Act if it is satisfied that it is necessary in the public interest so to do.  Such exemption is in respect of the goods of any specified description and can either be absolute or subject to such conditions (to be fulfilled before or after clearance) as may be specified in the notification.  The exemption can be from the whole or any part of duty of customs leviable thereon.    Therefore, exemption notifications are to be interpreted and given effect to only by (i) the exact identity of the goods specified in the notification, (ii) condition(s), if any, given in the notification which is/are to be fulfilled before or after clearance as may be specified in the notification and (iii) the extent of exemption of duty which is also specified in the notification itself.  We make it clear that in so far as the goods specified in category (g) of this exemption Notification are concerned, no condition(s) has/have been stipulated therein excepting limiting the import of such goods from China and specifying the notified Land Customs Stations and the land routes through which alone the import has to take place for getting the benefit of exemption of duty under the said Notification.   We hasten to add that this ruling does not preclude the concerned authorities from verifying/satisfying themselves as to compliance of requirements under other Acts/Rules.
 

Applying this principle, we give the rulings on the questions (b) & (c) as follows :-

 

Qn. (b)  -   On a plain reading of the text of the category (g) in column (2) against Serial No. 1 of the Table annexed to the Notification No. 38/96-Cus dated 23.7.96 the goods specified therein which includes 'wool' are end to get exemption from duty when imported into India from China through the specific Land Customs Stations and along the specified land routes mentioned  therein. 

 

 

Qn. (c)   -  The category (g) in the aforesaid exemption Notification does not  have any actual user condition after the specified goods are imported.   

 

           

             Pronounced in the open Court of the Authority on this 29th day of August, 2006.

 

 

 

       Sd/-                                        Sd/-                                                 Sd/-

(B.A.Agrawal)                     (Justice S.S.M.Quadri)                             (Somnath Pal)     

     Member                          Chairman                                       Member

 

Registered /A D 

F. No. AAR/44/01(Cus)/2005                                                    Dated:  29th August, 2006 

 

(A) This copy is certified to be a true copy of the Ruling and is sent to :-

                                                                                                          

 

1.         Mr. Akash Jain, 130, Rishabh Vihar, Delhi-110092

2.         Commissioner of Customs, Custom House, Central Revenue Building, The Mall, Amritsar-143001

3.         Commissioner of Customs, 5th & 11th Floor, Kendriya Bhawan, Sector-H, Aliganj, Lucknow-226024

4          Member (Customs), Central Board of Excise & Customs, North Block, New Delhi.

5.         Mr.A.K.Roy,Joint Chief Departmental Representative, Customs, Excise & Service Tax Appellate Tribunal, West Block-2, R.K.Puram, New Delhi-66.

6.         Guard File

(VIJAI KUMAR)

 JOINT COMMISSIONER

Registered /A D

 

 F. No. AAR/44/01(Cus)/2005                                                  

Dated:  5th September, 2006 

(A) This copy is certified to be a true copy of the Ruling and is sent to :-                                                                                                          

 

1.         Mr. Akash Jain, 130, Rishabh Vihar, Delhi-110092

2.         Commissioner of Customs, Custom House, Central Revenue Building, The Mall, Amritsar-143001

3.         Commissioner of Customs, 5th & 11th Floor, Kendriya Bhawan, Sector-H, Aliganj, Lucknow-226024

4.       Member (Customs), Central Board of Excise & Customs, North Block, New Delhi.

5.         Mr.A.K.Roy,Joint Chief Departmental Representative, Customs, Excise & Service Tax Appellate Tribunal, West Block-2, R.K.Puram, New Delhi-66.

6.         Guard File

 

(VIJAI KUMAR)

 JOINT COMMISSIONER 

 

(B)    In view of the provisions contained in Rule 25 of the Authority for Advance Rulings (Procedure) Regulations, 2005, permission of the Authority is accorded for publication of the Advance Ruling. Copy of the Advance Ruling is forwarded to:

 

1.   Centex Publications Pvt. Ltd., 1512-B, Bhishma Pitamah Marg, Opp. ICICI Bank of Defence colony, New Delhi-110 003

2.   Deeparchie Publications, M-93, Marg-46, Saket, New Delhi-110 017

3.   Excise & Customs Cases, B-37, Sector-1, Noida-201301 (U.P.)

4.   Cen-Cus Publications, A-252, Shivalik, New Delhi-110 017

5.   Taxindiaonline.com Private Limited., B-XI/8183, Vasant Kunj, New Delhi-110 070

6.   Taxmann Allied Service Pvt. Ltd, 59/32, New Rohtak Road,  New Delhi-110005.

7.   www.allindiantaxes.com, 803, Kirti Shikhar, District Centre, Janakpuri, New Delhi-110058

 

(VIJAI KUMAR)

 JOINT COMMISSIONER