Misrepresentation in advance rulings under the Customs Act can void an AAR ruling where facts were materially misstated.

Advance rulings under section 28K of the Customs Act, 1962 can be declared void ab initio where they are obtained by fraud or misrepresentation of material facts, and the existence of an appeal under section 28KA does not bar that remedy. The Authority found that investigation material, section 108 statements, the Chartered Engineer's report and documents showed the imported goods were complete, identifiable mobile-phone parts, while the covers had already acquired their essential character after moulding and machining. It held that the applicant had projected complete functional parts as mere inputs for cover manufacture, so the ruling was procured by misrepresentation and was liable to be treated as void ab initio.

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Issues: Whether the advance ruling was obtained by fraud or misrepresentation of material facts so as to justify declaration of the ruling as void ab initio under section 28K of the Customs Act, 1962.

Analysis: The Authority found that the investigation, statements recorded under section 108 of the Customs Act, 1962, the Chartered Engineer's report, and the documentary material showed that the imported items were complete and independently identifiable parts of mobile phones, while the covers had already acquired their essential character on moulding and machining. The Authority held that the applicant had projected complete functional parts as mere inputs for manufacture of covers, and that this was not a mere difference of opinion on classification. It further held that section 28K operates where the ruling itself was obtained by fraud or misrepresentation of facts, and that the availability of the appellate remedy under section 28KA of the Customs Act, 1962 did not exclude action under section 28K.

Conclusion: The advance ruling was obtained by misrepresentation of material facts and was liable to be declared void ab initio under section 28K of the Customs Act, 1962.

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