advance ruling

[Anil Jangid]

What is the advance ruling under central excise, For advance ruling whom to we write a letter Superintendent/AC/DC OR Commissioner.We have certain issue so we want their opinion.

[Hardik Shah]

With a view to avoiding a dispute in respect of tax liability in the case of a non-resident and also specified categories of residents, a Scheme of Advance Ruling has been incorporated. The Authority for Advance Rulings (AAR) pronounces rulings on the applications submitted in the prescribed form following prescribed procedure and such rulings are binding both on the applicant and department. Thus, the applicant can avoid expensive and time consuming litigation on any question of law or fact which may arise. You can get further information from http://www.cbec.gov.in/htdocs-cbec/aar/aar

[Ganeshan Kalyani]

If you want us to guide you in your doubts you may write it here in TMI or if you like to approach Authority you may do so as suggested by Mr.Hardik Shah ji.

[Mahir S]

"Authority" means the Authority for Advance Rulings constituted under section 28F of the Customs Act and referred to in clause (e) of section 23A of the Central Excise Act and clause (d) of section 96A of the Service Tax Provisions

[Mahir S]

INTRODUCTION AUTHORITY FOR ADVANCE RULINGS CENTRAL EXCISE

Advance rulings enable foreign investors to know in advance into certainty their indirect tax duty liability on production and manufacture of goods in India.

2. Relevant provisions for obtaining an advance ruling are contained in Chapter IIIA in the Central Excise Act, 1944;

2.1. The Central Excise (Advance Rulings) Rules, 2002 notified vide notification Nos. 28/2002-C.E. (N.T.) dated 23rd August, 2002 and amended vide notification Nos. 59/2003-C.E. (N.T.) dated 23rd July, 2003 and notification Nos. 16/2007-C.E. (N.T.) dated 6th March, 2007 provide for the format to be used for filing application.

2.2. Procedure Regulations of the Authority (AARUL CESTAT) have also been notified vide notification No. 1/2005-AAR dated 7th Jan., 2005.

3. The scheme of Advance Rulings allows a non-resident investor setting up a joint venture in India in collaboration with a non-resident or a resident; or a resident setting up a joint venture in India in collaboration with a non-resident; or a wholly owned subsidiary Indian company, of which the holding company is a foreign company; or a joint venture in India; or a resident falling within any such class or category of persons as notified by the Government of India in this behalf , to seek in advance, a ruling from the Authority for Advance Rulings.

4. Advance rulings can be sought in respect of -

(a) Classification of goods under the Central Excise Tariff Act, 1985;

(b) Principles of valuation under the Central Excise Act, 1944;

(c) Applicability, of notifications issued in respect of duties under the Central Excise Act, 1944 and Central Excise Tariff Act, 1985 and any duty chargeable under any other law for the time being in force in the same manner as duty of Central Excise leviable under the Central Excise Act.

(d) Admissibility of input-tax credit under Central Excise law.

(e) Determination of the liability to pay duties of excise on any goods under this Act.

[KASTURI SETHI]

I am thankful to Sh.Mahir S. Sir for comprehensive reply. You have made the concept crystal clear. I also agree with views of Sh.Ganeshan Kalyani, Sir and Sh.Hardik Shah, Sir.

[Ganeshan Kalyani]

Kasturi Sir you do not refrain from appreciating the efforts of the experts. Your appreciation is a remuneration to our efforts. Thanks sir.

[KASTURI SETHI]

Sh.Ganeshan Kalyani Ji,

Sir, Any expert when he is on right track (may be having divergent view), must be appreciated. I call it a sportsman spirit.

[Ganeshan Kalyani]

Sir, I have also noticed that your written communication is commendable. The sentences formed are flawless. I am impressed with the writing skills you have. It is not exaggeration but true. Thanks

[KASTURI SETHI]

Sh.Ganeshan Kalyani Ji,

Everybody feels elated with compliments and I am also made of the same stuff. Really thankful to you. At the same time I would not hesitate to say that it is better to listen to criticism because it paves the way for further improvement and progress in life. So I welcome healthy criticism from any quarter.

[Mahir S]

Kasturi Sir,

Thanks for the appreciation.

AI Summary

Advance Ruling under Central Excise: binding determinations on classification, valuation, notifications, input credit and duty liability. Advance rulings under central excise offer a pre emptive mechanism for specified non residents and notified resident categories to obtain determinations from the Authority for Advance Rulings. Applications follow Chapter IIIA and the Central Excise (Advance Rulings) Rules, and rulings-addressing classification, valuation, applicability of notifications, input tax credit admissibility, and duty liability-are binding on both the applicant and the department.