Central Excise Law

1.For persons who wish to be clear on tax liabilities before venturing into a particular taxable activity, a statutory mechanism has been provided in the form of Advance Rulings. As the name suggests, it sought and given before the commencement of a particular activity and it is ‘ruling’ i.e. it is in the nature of an order binding the parties involved. For this purpose, Authority for Advance Rulings (Central Excise, Customs & Service Tax) has been established. The Advance Rulings Authority under Income Tax has been authorized to function as ARA under Customs also w.e.f. 15.09.2009.

2. Persons eligible to seek Advance Ruling :

(a) Any person who is a non-resident setting up a join venture in India in collaboration with a non-resident or a resident.

(b) Any person who is a resident setting up a joint venture in India in collaboration with a non-resident or a resident.

(c) A wholly owned subsidiary India company of which the holding company is a foreign company.

(d) A joint venture in India.

(e) A resident falling within any class or category of persons as the Central Government may notify. Public Sector Undertaking and resident public limited companies which shall also include a private company that becomes a public company by virtue of Section 43A of the Companies Act, 1956 have been notificed in this regard.

(3) Questions on which Advance Ruling can be sought :

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

(b) Applicability of a notification issued Section 5A of Central Excise Act, 1944 having a bearing on the rate of duty.

(c) Principles to be adopted for determination of assessable value of goods under Central Excise Act. 1944.

(d) Applicability of notifications issued under the Central Excise Act, 1944, Central Excise Tariff Act, 1985 in respect of duties of excise and any duty chargeable under any other law as duty of excise leviable under the Central Excise Act, 1944.

(e) Admissibility of Cenvat Credit of excise duty paid or deemed to have been paid on goods used in or in relating to the manufacture.

(f) Determination of excise duty liability on any goods under Central Exciae Act, 1944.