Case Law Details
In Re BASF India Limited (CAAR Mumbai)
It is the applicant’s contention that there is nothing in the law which prohibits them from seeking advance rulings in respect of as many products as they may choose. They also seek to derive strength from the provisions of the General Clauses Act for this proposition. In my considered opinion, such an assertion flies in the face of logic and common sense. The scheme of advance ruling in customs envisages that an applicant can receive certainty in respect of their entry/exit tax liability prior to importation or exportation. The issues on which advance rulings can be sought have been outlined in the statute. A time limit of three months is prescribed for rendering an advance ruling. The process also includes consultation with the jurisdictional customs authorities and adherence to the principles of natural justice. In such a scenario, if advance rulings in respect of multiple goods/items/products are sought in one application, then it would be well nigh impossible to render a ruling within the time prescribed in the statute. I can appreciate that there would be instances where the items/products etc. are so similar that they can be combined in a single application. For example, I had the occasion to deal with the issue of classification of API supari, boiled supari, chikni supari, unflavoured supari and flavoured supari in one application. In respect of all the above, the starting raw material is raw areca nut/betel nut, which then undergoes the processes of cleaning, sorting, removal of impurities, garbling, cutting etc. In such a case, grouping several items in one application can perhaps be justified. However, so far as the present proceedings are considered, any product, to be eligible for classification as an animal feed supplement, must satisfy the conditions prescribed for that purpose. The relevant chapter note reads as under: –
Heading 2309 includes products of a kind used in animal feeding, not elsewhere specified or included, obtained by processing vegetable or animal materials to such an extent that they have lost the essential characteristics of the original material, other than vegetable waste, vegetable residues and by-products of such processing. ‘
However, I find nothing in the application before me to suggest that the mandate of the chapter note reproduced above is satisfied by any of the 16 products, the classification of which has been sought in the present advance ruling application. Therefore, it is not sufficient to decide the classification of, say LUTA.CAPLAN 98% 25KG 5H41, which is said to be Calcium D Pantothenate minimum 98% on the basis of the following description of usage,
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