NIL AIDC on concessional FTA imports is available when basic customs duty exemption is claimed and allowed under the notification.

Section 28I does not bar an advance ruling application unless the same question is already pending in a formal customs, tribunal, or court proceeding; inquiry, audit, or correspondence alone are insufficient, so the application remains maintainable. Serial No. 19 of Notification No. 11/2021-Customs allows NIL Agriculture Infrastructure and Development Cess where exemption from basic customs duty is claimed and allowed under the listed FTA notifications, even if the importer receives only a concessional BCD rate. The text treats exemption under Section 25 as including partial relief unless expressly limited, and concludes that qualifying FTA imports covered by the Annexure can receive NIL AIDC.

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Issues: (i) Whether the advance ruling application was barred under Section 28I of the Customs Act, 1962 on account of any pending proceeding before Customs authorities; (ii) Whether NIL Agriculture Infrastructure and Development Cess under Serial No. 19 of Notification No. 11/2021-Customs dated 01.02.2021 is where the importer claims and is allowed a concessional rate of Basic Customs Duty under the FTA notifications listed in its Annexure.

Issue (i): Whether the advance ruling application was barred under Section 28I of the Customs Act, 1962 on account of any pending proceeding before Customs authorities.

Analysis: Section 28I bars admission only where the very question is already pending before an officer of customs, the Appellate Tribunal, or any Court, or has already been decided. Mere investigation, audit enquiry, query letters, or correspondence do not amount to a formally instituted proceeding on the issue. On the facts, no show cause notice or equivalent adjudicatory proceeding had been issued on the question referred, and the departmental action remained at the stage of inquiry and fact-finding.

Conclusion: The application was maintainable and was not hit by the bar under Section 28I.

Issue (ii): Whether NIL Agriculture Infrastructure and Development Cess under Serial No. 19 of Notification No. 11/2021-Customs dated 01.02.2021 is available where the importer claims and is allowed a concessional rate of Basic Customs Duty under the FTA notifications listed in its Annexure.

Analysis: Section 25(1) of the Customs Act, 1962 authorises exemption from the whole or any part of customs duty, so the concept of exemption is not confined to a nil rate. Serial No. 19 of Notification No. 11/2021-Customs uses the expression 'exemption from basic customs duty is claimed and allowed' without any restriction that the exemption must reduce BCD to nil. The Annexure to the notification includes the relevant FTA notifications, and the policy note in the Union Budget 2021 supports the view that imports under FTA-based concessional schemes were intended to remain outside AIDC. Accordingly, the condition in Serial No. 19 is satisfied once BCD exemption or concession is claimed under the listed notifications and allowed by the proper officer, subject to compliance with the prescribed conditions.

Conclusion: The NIL AIDC benefit under Serial No. 19 is available even where the importer receives only a concessional BCD rate under the listed FTA notifications.

Final Conclusion: The applicant is entitled to claim NIL AIDC on qualifying FTA imports covered by the Annexure to Notification No. 11/2021-Customs, and the advance ruling application is admissible.

Ratio Decidendi: For the purpose of an exemption notification issued under Section 25 of the Customs Act, 1962, the expression 'exemption from duty' includes both full and partial relief unless the notification expressly restricts it, and pendency under Section 28I arises only when the issue is the subject of a formal proceeding capable of adjudication.

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