In exercise of the powers
conferred by section 157 read with sub-section (1)
of section 28H, sub-section (1) of section 28KA and sub-section (1) of
section 28M of the Customs Act, 1962 (52 of 1962) and in
supersession of the Authority for Advance Rulings (Customs, Central Excise and
Service Tax) Procedure Regulations, 2005, in so far as they relate to the
matters pertaining to the Customs Act, 1962 (52 of 1962), except as respects
things done or omitted to be done before such supersession, the Board hereby
makes the following regulations, namely:- (1)
These regulations
may be called the Customs Authority for Advance Rulings Regulations, 2021. (2)
They shall come into
force on the date of their publication in the Official Gazette. In these regulations, unless the
context otherwise requires,- (a)
"Act"
means the Customs Act, 1962 (52 of 1962); (b)
"authorised
representative",- (i)
in relation to an
applicant means an authorised representative as defined in sub-section (2) of
section 146A of
the Act; (ii)
in relation to a
Principal Commissioner or Commissioner, means a person- (A)
authorised in
writing by the Principal Commissioner or Commissioner to act as an authorised
representative; or (B)
appointed by the
Central Government as authorised representative or authorised by the Central
Board of Indirect Taxes and Customs to appear, plead and act for the Principal
Commissioner or Commissioner in any proceeding before the Authority; (c)
"petition"
means any petition of interlocutory, incidental or ancillary nature or
representation filed in a pending or disposed of application; (d)
"Principal
Commissioner or Commissioner", in respect of an application, means- (i)
the Principal
Commissioner or Commissioner of Customs, specified in the application; or (ii)
the Principal Commissioner
or Commissioner of Customs designated by the Board in respect of the
application; (e)
"Secretary"
means an officer, not below the rank of Assistant Commissioner of Customs or
Assistant Commissioner of Central Tax designated as Secretary by the Board; (f)
"section"
means section of the Act; (g)
words and
expressions used in these regulations and not defined but defined in the Act
shall have same meanings respectively assigned to them in the Act. (1)
The language of the
Authority shall be Hindi or English. (2)
Where any document
is in a language other than Hindi or English, a Hindi or English translation
thereof duly attested shall be filed along with the original document. (1)
The Authority shall
have the power to hear and determine all applications and petitions. (2)
The Authority may,
if any difficulty arises in giving effect to its order or advance ruling,
either suo motu or on a petition made by the applicant or the Principal
Commissioner or Commissioner, within a period of one month of noticing the
difficulty, by appropriate order remove such difficulty, and pass such other
order as it considers just and necessary in the circumstances of the case. (3)
The Authority may
reopen the hearing of any case, before pronouncement of its order or advance
ruling, for sufficient cause. (4)
The Authority may,
in an appropriate case, direct- (i)
examination of any
records and submission of report; (ii)
conduct of any
technical, scientific or market enquiry of any goods or services and submission
of report and may also call for reports from experts and order such further
investigation as may be necessary for effectual disposal of the application. (5)
The Authority shall
have all the powers of a civil court in regard to the following matters,
namely:- (i)
discovery and
inspection; (ii)
enforcing the
attendance of any person and examining him on oath; (iii)
issuing commissions;
and (iv)
compelling
production of books of account and other records. (1)
The Secretary shall
be in overall charge of the office of the Authority and shall function under
direct supervision of the Authority. (2)
The Secretary shall- (a)
have custody of the
records and the official seal of the Authority; (b)
receive all
applications and petitions filed before the Authority; (c)
scrutinise
applications and petitions and point out omissions and defects in the
application or petition and require the applicant or petitioner to make good
the omissions or remove the defects within the time granted by the Secretary
and in case of non-compliance, place such application or petition before the
Authority for appropriate orders; (d)
forward a copy of
the application along with its enclosures to the Principal Commissioner or
Commissioner of Customs to transmit records of the case, if any, and to offer
his comments on the application; (e)
place all the
applications before the Authority for appropriate orders under sub-section (2)
of section 28-I; (f)
issue notices or
other processes, as may be ordered by the Authority; (g)
verify service of
notices or other processes on the parties to the application or petition and
obtain necessary orders of the Authority in case of defective service; (h)
requisition records
from the custody of any person, on the orders of the Authority; (i)
return original
records to the person from whose custody they were requisitioned; (j)
allow inspection of
the records of the Authority; (k)
carry out any
amendment of the records of the Authority to conform to its directions; (l)
grant to the parties
to the application or petition certified copies of the orders or advance
rulings and documents filed in the proceedings before the Authority; (m)
preserve records of
every application or petition and other materials for a period of five years
from the date of disposal of the application and weed out or destroy the same thereafter
unless otherwise directed by the Authority; and (n)
discharge any other
function as may be assigned by the Authority by special or general order. (1)
An application for
obtaining an advance ruling shall be made in Form CAAR-1 before the
jurisdictional Authority as per the jurisdiction specified in column (3) of the
Table below:- S. No. Customs Authority for Advance Rulings. Jurisdiction to hear applications for Advance Rulings
(State-wise and Union territory-wise). (1) (2) (3) 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. 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. (2)
The jurisdiction
shall be determined in terms of the address provided by the applicant while
making the application, and the Authority for an applicant providing an address
other than that of within the territory of India, shall be the Authority
situated at Delhi. (3)
The Board shall pass
an order specifying therein the address, phone number and other details related
to the concerned Authority. (4)
The application
shall be deemed to have been submitted to the concerned Authority on the date
on which it is received in the office of the said Authority. (5)
The application
referred to in sub-rule (1), the verification contained therein and all
relevant documents accompanying such application shall be signed,- (a)
in the case of an
individual, by the individual himself, or where the individual is absent from
India, by the individual concerned or by some person duly authorised by him in
this behalf; and where the individual is a minor or is mentally incapacitated
from attending to his affairs, by his guardian or by any other person competent
to act on his behalf; (b)
in the case of a
Hindu undivided family, by the Karta of that family and, where the Karta is
absent from India or is mentally incapacitated from attending to his affairs,
by any other adult member of that family; (c)
in the case of a
company or local Authority, by the principal officer thereof authorised by the
company or the local Authority, as the case may be, for such purpose; (d)
in the case of a
firm, by any partner thereof, not being a minor; (e)
in the case of an association,
by any member of the association or the principal officer thereof; and (f)
in the case of any
other person, by that person or some person competent to act on his behalf. (6)
Every application
shall be filed in quadruplicate and shall be accompanied by a fee of ten
thousand rupees in the form of demand draft drawn in favour of "Customs
Authority for Advance Rulings, Delhi" or "Customs Authority for
Advance Rulings, Mumbai", as the case may be. (1)
Applications shall
be received between 10:00 a.m. and 1:00 p.m. and between 2:00 p.m. and 5:00
p.m. on any working day at the respective office of the Authority. (2)
Every application,
its verification, annexures, statements and supporting documents shall be signed
in the manner set out in these regulations. (3)
The application
shall be accompanied by evidence that the person who has signed the
application, verification and other documents is authorised or competent to
sign under these regulations. (4)
Every application,
its verification, annexures, statements and supporting documents shall be on
A-4 size paper and should be neatly and legibly written, typed or printed
leaving a left margin of five centimeters and only on one side of a page in
double-line spacing. (5)
If the applicant is
not based in India, he shall, inter alia, indicate in a separate annexure to
the application- (a)
his postal and
e-mail address abroad; (b)
the name and address
including e-mail address of his representative in India, if any, authorised to
act on his behalf and to receive notices or other documents sent by the
Authority. (1)
The officer receiving
the application shall put his initials and the stamp of the Authority thereon
together with the date and time of receipt thereof and shall also acknowledge
its receipt and he shall also enter the particulars of the application in the
register of daily filing, maintained for that purpose. (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)
Date of receipt of
an application free from any defect or deficiency in the secretariat of the
Authority shall be deemed to be the date of the application for the purposes of
sub-section (4) of section 28H. (5)
When an application
is free from any defect or deficiency, an endorsement "examined and
registered" shall be made thereon and a serial number allotted thereto. (6)
In case the defect
or deficiency is not removed or made good within the time granted under
sub-rule (3), the application shall be placed before the Authority for
appropriate orders. (7)
On allotment of
serial number to an application under sub-rule (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 sub-rule (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 therefore 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-section (2) of section 28-I and a copy of the order passed by the
Authority shall be sent to the applicant and the Principal Commissioner or
Commissioner concerned. (11)
Where an application
is allowed, the comments of the Principal Commissioner or Commissioner
concerned and further material, if any, shall accompany a copy of the order
sent to the applicant drawing his attention to the statutory provisions that he
has a right to be heard, if he so desires, before pronouncement of advance
ruling and the response of the applicant should reach the Authority within two
weeks of receipt of the copy of the order. (12)
Hearing of the
application shall normally be held between 11:00 a.m. and 5:00 p.m. on a
working day in the office of the Authority or an alternative place fixed by the
Authority. (13)
In the absence of
the request for personal hearing from the applicant, advance ruling shall be
pronounced after hearing the Principal Commissioner or Commissioner concerned
or his authorised representative, if present, on the date of hearing and on the
basis of records available with the Authority. (14)
Where the Authority
reserves an application for consideration, the advance ruling or such other
order as the Authority may deem fit shall be pronounced in the open court under
intimation to the applicant and the Principal Commissioner or Commissioner
concerned and a copy of the advance ruling or order shall be served upon the
parties to the application. The Principal Commissioner or
Commissioner of shall be authorised to file appeal against the advance ruling
in terms of sub-section (1) of section 28KA. (1)
An appeal against
the advance ruling issued under sub-section (6) of section 28-I shall be made by the
applicant in Form CAAR-2 and shall be accompanied by a fee of fifteen thousand
rupees. (2)
An appeal against
the advance ruling issued under sub-section (6) of section 28-I of
shall be made by the Principal Commissioner or Commissioner in Form CAAR-3 and
no feel shall be payable by the said officer for filing the appeal. (3)
An appeal shall be
deemed to have been submitted to the Appellate Authority on the date on which
it is received in the office of the Appellate Authority. (4)
Every requisition,
direction, letter, authorisation, or notice to be issued on behalf of the
Authority, shall be signed by the Secretary or by any other officer authorised
by him. (5)
Nothing contained in
sub rule (1) shall apply to any direction which the Authority may issue to an
applicant or a Principal Commissioner or Commissioner or an authorised
representative present during the course of the hearing. (1)
The service of every
notice or other document required to be served on or delivered to, any person
in compliance with the orders of the Authority shall be in the manner specified
in these regulations. (2)
The service of
notice or document shall be made by hand delivery or by registered post with
acknowledgement due or by speed post or by courier service or by any other
means of transmission of documents including e-mail or fax. (3)
Notices or documents
required to be served on the parties to the application or petition shall be deemed
to have been served, if delivered at the address indicated in the application
or petition and in the case of a Principal Commissioner or Commissioner, at the
office of the Principal Commissioner or Commissioner concerned. Where in an application there is
no Principal Commissioner or Commissioner specified by the applicant, a copy of
the application and enclosures thereto shall be forwarded by the Authority to
the Board calling upon them to designate, within two weeks of receipt of such
copy, a Principal Commissioner or Commissioner for the purposes of the said
application, failing which the application shall be proceeded with in the
absence of a Principal Commissioner or Commissioner. (1)
The Authority may,
at its discretion, either suo motu or on a petition made to this effect by a
party to the application, permit or require the applicant or the Principal
Commissioner or Commissioner to submit such additional facts as may be
necessary to enable it to pronounce its advance ruling. (2)
The additional facts
sought to be brought on record, by the petitioner shall be supported by
necessary documents, if any, duly verified. (1)
The applicant shall
not, except with the leave of the Authority, urge or be heard in respect of any
question other than the question specified in the application, but in
pronouncing an advance ruling on the question set forth in the application, the
Authority may at its discretion consider such other aspects as may be necessary
to pronounce the advance ruling on the question specified in the application. (2)
On a petition made
by an applicant, the Authority may permit amendment of a question, in
appropriate cases. (1)
An authorised
representative appearing for the applicant or the Principal Commissioner or
Commissioner, as the case may be, shall, before the commencement of the
hearing, file before the Secretary, a document authorising him to appear for
the said applicant or the Principal Commissioner or Commissioner. (2)
Every such
authorised representative appearing shall notify to the Secretary the address
of his office, before the commencement of the hearing. (3)
Any change of an
authorised representative shall be intimated by the concerned party to the
Secretary as well as to the other party to the application. (4)
No person other than
an applicant or the concerned Principal Commissioner or Commissioner or their
authorised representative, shall be heard in person save by special leave of the
Authority. Where the applicant, being an
individual, dies, or being a company or association of persons, whether
incorporated or not, is wound up or dissolved or disrupted or amalgamated or
succeeded to by any other person or otherwise comes to an end, the application
shall not abate and the proceedings in the application may be continued by the
executor, administrator, liquidator, receiver or assignee or other legal representative
of the applicant, as the case may be, on a petition made in this behalf, if the
Authority considers that the circumstances so justify. (1)
On the day fixed for
hearing or any other day to which the case is adjourned, the Authority shall
hear the applicant or his authorised representative in cases where it is
proposed to reject the application or where the applicant seeks an opportunity
of being heard; the Authority may also hear the Principal Commissioner or Commissioner
or his authorised representative, if it considers it necessary, before
pronouncing its advance ruling. (2)
In an appropriate
case, the Authority may call upon any person to depose or to supply such
material or document, as it may consider necessary to arrive at a decision. (3)
The Authority may,
in an appropriate case where an important question of law arises, make a
reference to a law officer of the Central Government including the
Attorney-General and Solicitor General to furnish his opinion to the Authority
in the matter, as per the extant procedure in this regard. (4)
The Authority may,
on such conditions as the circumstances of the case require, adjourn the
hearing of the application. Where on the day fixed for
hearing or any other day to which the case is adjourned, the applicant or the
Principal Commissioner or Commissioner does not appear in person or through an
authorised representative when the application is called for hearing, the
Authority may dispose of the application ex parte on merits: Provided that where an
application has been disposed of under this rule and the applicant or the
Principal Commissioner or Commissioner, as the case may be, applies within
seven days of receipt of a copy of the order or advance ruling and the
Authority is satisfied that there was sufficient cause for his non-appearance
when the application was called for hearing, the Authority may, after allowing
the opposite party a reasonable opportunity of being heard, make an order
setting aside the ex parte order or advance ruling and restore the application
for fresh hearing. The applicant may withdraw his
application within two weeks from the date of the application and thereafter
only with the leave of the Authority. The Authority may suo motu or on
a petition by the applicant or the Principal Commissioner or Commissioner, but
before pronouncement of an advance ruling or before an advance ruling
pronounced has been given effect to, on being satisfied that an order or
advance ruling was pronounced under mistake of law or fact, modify such order
or advance ruling in such respects as it considers appropriate, after allowing
the applicant and Principal Commissioner or Commissioner concerned a reasonable
opportunity of being heard. (1)
The Authority may,
with a view to rectifying any mistake apparent from the record, amend any
advance ruling pronounced by it before such ruling has been given effect to. (2)
Such amendment may
be made suo motu or when the mistake is brought to the notice of the Authority
by the applicant or the Principal Commissioner or Commissioner, but only after
allowing the applicant and the Principal Commissioner or Commissioner a
reasonable opportunity of being heard. If at any stage of the
proceedings it is brought to the notice of the Authority that there is any
factual or material error in the records, the Authority may permit amendment of
the records after hearing the applicant and the Principal Commissioner or
Commissioner or their authorised representative. The Secretary may grant
certified copies of documents, orders or advance rulings to the applicant or
the Principal Commissioner or Commissioner on a written request. (1)
The applicant or the
Principal Commissioner or Commissioner or his authorised representative may be
allowed to inspect the records of an application or petition on making a written
request to the Secretary subject to the condition that only those documents
shall be made available for inspection that are relied upon in the proceedings
before the Authority. (2)
Inspection shall be
allowed only in the presence of an officer of the Authority and taking of notes
and not copies of the documents shall be permitted. (1)
Where it is brought
to the notice of the Authority on a representation made by the Principal
Commissioner or Commissioner concerned or otherwise that an advance ruling
pronounced by it has been obtained by the applicant by fraud or
misrepresentation of facts, the matter shall be examined by the Authority and
any such representation shall be supported by an affidavit duly attested and
accompanied with attested copies of documents relied upon. (2)
If the Authority
after examining the representation is prima facie of the view that the advance
ruling appears to have been obtained by the applicant by fraud or
misrepresentation of facts, the applicant shall be given a notice to explain as
to why the ruling should not be declared void ab initio under sub-section (1)
of section 28K. (3)
The notice referred
to in sub-regulation (2) to the applicant shall be in writing- (a)
informing him of the
grounds on which it is proposed to declare the advance ruling as void ab
initio; (b)
enclosing copies of
the documents, if any, sought to be relied upon; (c)
giving an
opportunity of making a representation in writing within such reasonable time
as may be specified in the notice against the grounds for declaring the advance
ruling void ab initio; and (d)
giving a reasonable
opportunity of being heard in person or through an authorised representative in
the matter. (4)
A copy of the notice
with enclosures shall also be forwarded to the Principal Commissioner or
Commissioner for comments, if any, and a reasonable opportunity shall also be
given to the Principal Commissioner or Commissioner or his authorised
representative of being heard before passing any order. (5)
Where the Authority
finds that the advance ruling was obtained by the applicant by fraud or
misrepresentation of facts, the same shall be declared void ab initio. Such of the orders or advance rulings
of the Authority, as the Authority deems fit for publication in any
authoritative report or the press, may be released for such publication on such
terms and conditions as the Authority may specify. (1)
Every order or
advance ruling of the Authority shall be duly signed by the Authority
pronouncing the order or advance ruling and bear the official seal of the
Authority. (2)
A certified copy of
order or advance ruling of the Authority shall be communicated to the applicant
and the Principal Commissioner or Commissioner under the signature of the
Secretary or an officer of the Authority authorised by the Secretary in this
behalf and bear the official seal of the Authority. When the Authority is unable to
discharge his functions owing to absence, illness or any other cause or in the
event of occurrence of any vacancy, the Board, may specify any other Authority
situated elsewhere to act as the said Authority. The provisions contained in
these regulations for hearing and disposal of an application shall apply,
mutatis mutandis, to the hearing and disposal of all petitions before the
Authority. The provisions contained in
these regulations for hearing and disposal of an application shall apply,
mutatis mutandis, to the hearing and disposal of all transferred application
and proceeding, referred to in sub-section 3 of section 28F. (1)
An authorised
representative shall appear before the Authority in dress specified for the
members of his profession by the competent professional body, if any. (2)
All other persons
appearing before the Authority shall be properly dressed. No person shall be allowed to
bring mobile phones, sticks, arms or other weapons in the room where the
Authority conducts the proceedings. CUSTOMS AUTHORITY FOR ADVANCE RULINGS REGULATIONS, 2021
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