In re Sarveshwari Industries (CAAR Mumbai)
Sarveshwari Industries applied to the Customs Authority for Advance Rulings (CAAR) in Mumbai, seeking a ruling on the classification of “Scented Sweet Supari” under CTH 21069030. The application was filed under Section 28-H of the Customs Act, 1962. However, it was brought to the CAAR’s attention during a personal hearing that a similar case involving M/s Bag Industries, which had resulted in a ruling by the same authority, was currently under review by the Delhi High Court. Furthermore, the High Court had issued a stay order on the operation of that ruling.
Given the pending litigation and the High Court’s stay order, the CAAR determined that issuing a fresh ruling on Sarveshwari Industries’ application would be inappropriate. Section 28-I (2) of the Customs Act, 1962, prohibits the authority from issuing rulings on matters already pending before a court. Adhering to judicial discipline, the CAAR decided to refrain from issuing a ruling in this instance. The applicant was informed that they could reapply to the authority once the Delhi High Court had reached a final decision on the M/s Bag Industries case, should they still desire a ruling. Consequently, the CAAR disposed of the application without issuing a ruling.
