Customs Act, 1962 Section 28h — Application for advance ruling
Customs Act, 1962 · Application for advance ruling
Plain-English Explanation
Overview
Section 28H of the Customs Act, 1962 outlines the procedure for applying for an advance ruling on specific customs-related matters. This provision allows importers, exporters, and other stakeholders to obtain clarity on their customs liabilities before undertaking a transaction, thereby reducing the risk of disputes and ensuring compliance.
Who Does This Apply To?
This section applies to any applicant who desires to obtain an advance ruling under Chapter VB of the Customs Act, 1962. This includes importers, exporters, manufacturers, and any other person involved in cross-border transactions who seeks clarity on customs duties, classification, origin or valuation.
How It Works
The process of applying for an advance ruling under Section 28H involves several steps:
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Filing the Application: An applicant must submit an application in the prescribed form and manner, along with the specified fee. The application must clearly state the question on which the advance ruling is sought.
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Nature of Questions: The question posed in the application must relate to one of the following matters:
- Classification of goods under the Customs Tariff Act, 1975.
- Applicability of a notification issued under Section 25(1) of the Customs Act, 1962 that impacts duty rates.
- Principles for determining the value of goods under the Customs Act.
- Applicability of notifications regarding taxes or duties under the Customs Act, 1962, the Customs Tariff Act, 1975, or any other applicable law.
- Determination of origin of goods based on rules notified under the Customs Tariff Act, 1975.
- Any other matter as specified by the Central Government via notification.
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Withdrawal: An applicant has the option to withdraw their application at any time before the advance ruling is pronounced.
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Representation: The applicant can be represented by any person resident in India who is authorised to do so. The term "resident" has the same meaning as defined in Section 2(42) of the Income-tax Act, 1961.
Important Conditions & Exceptions
- Condition 1: The question must fall within the specified areas outlined in subsection (2) to be eligible for an advance ruling. The Authority will reject the application if the question is outside the specified areas.
- Condition 2: The application must be complete and accurate, with all required information and documents.
- Exception: Applications related to issues already pending before any customs authority or court are generally not admissible for advance ruling.
Practical Example
ABC Importers plans to import a new type of electronic component. They are unsure about the correct classification of the component under the Customs Tariff Act, 1975, which could affect the applicable duty rate. To avoid potential disputes and ensure compliance, ABC Importers files an application for an advance ruling under Section 28H, clearly stating the technical specifications of the component and the classification they believe is most appropriate. They also include the prescribed fee of ₹10,000 (example amount) along with their application. Before the ruling is given, they find a similar case in court, ABC withdraws their application.
Key Amendments
No major amendments since enactment.
No case laws found for this provision yet.
Browse all case laws →Frequently Asked Questions
What type of questions regarding customs duties are eligible for seeking an advance ruling under Section 28H of the Customs Act, 1962?
Section 28H(2) specifies that an advance ruling can be sought on questions related to the classification of goods, applicability of duty-related notifications under Section 25(1), the principles for determining the value of goods, applicability of tax/duty notifications, determination of origin of goods and other matters specified by the Central Government.
Who can apply for an advance ruling under Section 28H of the Customs Act, 1962, and what are the key requirements?
Any 'applicant desirous of obtaining an advance ruling' can apply under Section 28H(1). The application must be in the prescribed form and manner, accompanied by the prescribed fee. The application should clearly state the question on which the advance ruling is sought.
Can an application for an advance ruling under Section 28H be withdrawn, and if so, under what circumstances?
Yes, Section 28H(4) allows an applicant to withdraw their application at any time before the advance ruling is pronounced. There are no penalties associated with withdrawing an application before the ruling is issued.
Who can represent an applicant seeking an advance ruling under Section 28H of the Customs Act, 1962?
As per Section 28H(5), the applicant may be represented by any person resident in India who is authorised in this behalf. The explanation to this sub-section clarifies that "resident" has the same meaning as in clause (42) of section 2 of the Income-tax Act, 1961.
Are there any specific time limits prescribed for filing an application for an advance ruling under Section 28H of the Customs Act, 1962?
The Customs Act, 1962 and Section 28H specifically do not prescribe time limits for filing an application for an advance ruling. The timing depends on when the applicant needs clarity on the dutiability or classification of goods but it must be before the relevant customs action is finalized.
What is the process for determining the fee to accompany an application for advance ruling under Section 28H of the Customs Act, 1962?
Section 28H(1) states that the application must be accompanied by 'such fee as may be prescribed'. The specific fee amount and payment method are generally detailed in the relevant regulations issued by the Central Board of Indirect Taxes and Customs (CBIC) and available on their official website.
Beyond classification and valuation, what 'other matters' might the Central Government specify for advance rulings under Section 28H(2)(f) of the Customs Act, 1962?
Section 28H(2)(f) provides flexibility for the Central Government to expand the scope of advance rulings. These 'other matters' are specified via notification. Examples can include disputes about the applicability of specific exemptions or the interpretation of trade agreements affecting customs duties.
Key Conditions & Requirements
| Condition | Details |
|---|---|
| Application Form & Manner | The application must be made in the prescribed form and manner as specified in the rules. |
| Prescribed Fee Required | Application must be accompanied by the prescribed fee as specified. |
| Permissible Questions | The question must relate to classification, notification applicability (Section 25(1)), valuation principles, or origin of goods. |
| Notification Applicability | Question can relate to notifications concerning taxes/duties under the Customs Act or other applicable laws. |
| Origin of Goods | Question can relate to the determination of origin of goods as per rules notified under the Customs Tariff Act, 1975. |
| Central Government Specified Matters | Application may be made for any other matter that the Central Government may specify via notification. |
| Application Withdrawal Allowed | The applicant can withdraw their application anytime before the advance ruling is pronounced. |
| Authorized Representative | Applicant can be represented by any resident person in India who is properly authorized. 'Resident' has the same meaning as in section 2(42) of the Income-tax Act, 1961. |
Amendment History
Inserted by s. 91 of Finance Act 2022 (6 of 2022).
Substituted by the Finance Act, 2018 (13 of 2018), section 67( w.e.f. 29.03.2018) for clause (d). Earlier to substitution clause (d) stood as under as inserted (w.e.f. 14-5-2003) by section 111 of Act 32 of 2003: '(d) applicability of notifications issued in respect of duties under this Act, the Customs Tariff Act, 1975 (51 of 1975) and any duty chargeable under any other law for the time being in force in the same manner as duty of customs leviable under this Act.'
Inserted (w.e.f. 13-5-2005) by section 67 of the Finance Act, 2005 (18 of 2005).
Inserted by the Finance Act, 2018 (13 of 2018), section 67( w.e.f. 29.03.2018).
Omitted by s. 91 of Finance Act 2022 (6 of 2022).
Inserted by Finance Act, 2018 (13 of 2018), section 67( w.e.f. 29.03.2018).