Case Law Details
In re Ruby Surgicals & Allied Products Private Limited. (CAAR Mumbai)
Introduction: The Customs Authority of Advance Ruling Mumbai (CAAR) issued a ruling regarding the applicability of the Viscose Quality Control Order for Ruby Surgicals & Allied Products Pvt. Ltd. This article analyzes the ruling’s implications.
Detailed Analysis: The case revolves around Ruby Surgicals & Allied Products Pvt. Ltd., a company importing Viscose Staple Fibres (HSN 55041011) of Deniers other than 1.2 to 1.7. The company sought clarification on whether the Viscose Quality Control Order applies to their imports.
The applicant argued that since IS 17266:2019-1, which defines the specifications for Viscose Staple Fibres, doesn’t cover Deniers other than 1.2 to 1.7, they shouldn’t require BIS certification. However, the jurisdictional commissionerate disagreed, stating that the order mandates certification for all Viscose Staple Fibres.
During a personal hearing, the MD of Ruby Surgicals reiterated their stance, seeking confirmation that their imports fall outside the order’s purview. However, no representative from the jurisdictional commissionerate was present.
The CAAR considered all materials and concurred with the commissionerate, rejecting the application as it falls beyond its jurisdiction under Chapter VB of the Customs Act, 1962.
Conclusion: The CAAR’s ruling signifies the importance of understanding regulatory frameworks in import-export businesses. Despite the applicant’s argument, the authority upheld the requirement for BIS certification for all Viscose Staple Fibres, emphasizing compliance with the Viscose Quality Control Order. This decision highlights the need for meticulous adherence to regulatory standards to avoid legal complexities in international trade.
FULL TEXT OF THE ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING MUMBAI
M/s. Ruby Surgicals & Allied Products Private Limited (having IEC No. 0392013240) and hereinafter referred to as ‘the applicant’, in short) filed an application (CAAR-1) for advan e ruling before the Customs Authority for Advance Rulings, Mumbai (CAAR in short). The s id application was received in the secretariat of the CAAR, Murnbai on 11.07.2023 along with i s enclosures in terms of Section 28H (1) of the Customs Act, 1962 (hereinafter referred to as t e ‘Act’ also). The applicant has sought advance ruling for the following:
(a) Applicability of Viscose Quality Control Order for Viscose Staple Fibres of Deniers other han 1.2 to 1.7.
(b) Defining of specification of Viscose Staple fibres of Deniers other than 1.2 to1.7 in IS 17266:2019-1 Indian Standard TEXTILES-VISCOSE STAPLE FIBRES SPEC FICATION., if applicable or required.
2. Applicant has stated as follows in their sheet of the facts of the case enclosed with the CAAR – 1 application:
2.1. Ruby Surgical and Allied Products Private Limited is a company incorporated as a Private Limited company in India having CIN: U31112MH1972PTC015832 and has a valid IEC code Code IEC No. 0392013240.
2.2. Ruby Surgical and Allied Products Private Limited is involved in manufacturing of Surgical Products and Allied Products for which they are having a manufactured plant at A 43/44 MIDC, Jalgaon 425003.
2.3. Ruby Surgical and Allied Products Private Limited has been importing Viscose Staple fibres H S Code 55041011 of Deniers other than 1.2 to 1.7 for the past 6-7 years for manufacture of Allied Products till Viscose Quality Control order came into effect.
2.4. The Viscose Quality Control Order stipulated that Viscose Staple Fibre should comply with the IS 17266:2019-1 Indian Standard TEXTILES-VISCOSE STAPLE FIBRES-SPEC FICATION.
2.5. IS 17266:2019-1 Indian Standard TEXTILES-VISCOSE STAPLE FIBRES-SPECIFICATION has defined the specification of Viscose Staple fibres. The specifications have been designed/defined with reference to Textile Application.
2.6. However, IS 17266:2019-1 Indian Standard TEXTILES-VISCOSE STAPLE FIBRES-SPECIFICATION has not identified the specification of Viscose Staple Fibres of Deniers other than 1.2 to 1.7.
2.7. In this scenario Ruby Surgical and Allied Products Private Limited has no clarity to import understand that Viscose Quality Control Order is applicable to the Viscose Staple fibres of Deniers other than 1.2 to 1.7.
2.8. Since IS 17266:2019-1 Indian Standard TEXTILES-VISCOSE STAPLE FIBRES-SPECIFICATION does not define Specification of Viscose Staple Fibres of Deniers other than 1.2 to 1.7 the manufacturer/Supplier is unable to certify Viscose Staple fibres of Deniers other than 1.2 to 1.7 to BIS standard.
2.9. The BIS Certification is applicable to only products which are defined in IS. IS 17266:2019-1 Indian Standard TEXTILES-VISCOSE STAPLE FIBRES-SPECIFICATION has not defined/identified specification of Viscose Staple fibres of Deniers other than 1.2 to 1.7.
2.10. Since the Specification for a product are not defined in IS, BIS Certification is not available for the product.
3. In view of the above points submitted by the applicant the Jurisdictional Comm ssionerate i.e. Nhava Sheva-III, JNCH has submitted comments as follows:
3.1. Advance Ruling application has been filed for clarification in respect of applicability of Viscose Staple Fibres (Quality Control) Order, 2022, which mandates mandatory BIS certification and compliance as per IS 17266 : 2019 for Viscose staple Fibres on the products being imported by the applicant i.e. Viscose Staple Fibres (HSN 55041011) of Deniers other than 1.2 to 1.7.
3.2. Accordingly, a brief in the said matter is as under :
The FAQs on the Advance Ruling clarify that the questions on which the Advance Ruling can be sought shall be in respect of, –
(a) classification of goods under the Customs Tariff Act, 1975 (51 of 1975);
(b) applicability of a notification issued under sub-section (1) of section- 25, having a bearing on the rate of duty;
(c) the principles to be adopted for the purposes of determination of value of the goods under the provisions of the Customs Act, 1962
(d) applicability of notifications issued in respect of tax or duties under this Act or the Customs Tariff Act, 1975 or any tax or duty chargeable under any other law for the time being in force in the same manner as duty of customs leviable under this Act or the Customs Tariff Act;
(e) determination of origin of the goods in terms of the rules/regulations notified under the Customs Tariff Act, 1975 (51 of 1975) and matters relating thereto.
(d) any other matter as the Central Government may by notification, specify
3.3. The applicant in the said application form for Advance ruling in response to the parameter-`the Question of Law or fact on which the advance Ruling is required’ has stated that the Ruling has been sought on ‘Applicability of notifications issued in respect of tax or duties under this Act or the Customs Tariff Act. 1975 or any tax or duty chargeable under any other law for the time being in force in the same manner as duty of customs leviable under this Act or the Customs Tariff Act.’
3.4. It is pertinent to state that the Advance Ruling application has been filed for clarification in respect of applicability of Viscose Staple Fibres (Quality Control) Order, 2022, which mandates mandatory BIS certification and compliance as per IS 17266 : 2019 for Viscose staple Fibres on the products being imported by the applicant i.e. Viscose Staple Fibres (HSN 55041011) of Deniers other than 1.2 to 1.7.
The said question does not fall under the ambit of any parameter, on which the Advance Ruling can be sought.
3.5. Subsequently, it is also submitted that the BIS has published amendment no. 3 of July 2023 to IS :17266: 2019 Textiles -Viscose Staple Fibres – Specifications, where by ‘the term – Denier, max has been replaced with Denier (as declared), thereby expanding the purview of the said Viscose Staple Fibres (Quality Control) Order, 2022, which mandates mandatory BIS certification and compliance as per IS 17266 : 2019 for Viscose staple Fibres, on Viscose Staple Fibres of all deniers.
Copy of Amendment No. 3 JULY 2023 to IS 17266:2019 TEXTILES-VISCOSE STAPLE FIBRES-SPECIFICATION is enclosed with the said comments submitted by NS-III, JNCH.
4. A personal hearing in the matter was conducted on 18.01.2024 in office of the CAAR, Mumbai. During the personal hearing the MD of the Company M/s. Ruby Surgical and Allied Products Private Limited Shri Ketan Rana reiterated the contentions of the applicant and their earlier written submissions. He sought clarification with respect to import of Viscose Staple fibre and confirmation that the Viscose Staple fibre white, Denier other than 1.2 to 1.7 is outside the purview of Viscose Staple fibre Quality Control Order 2022, issued by the Ministry of Textile dated 29 December 2020, is freely importable without BIS certification for other than textile application. Nobody appeared from the concerned Jurisdiction Commissionerate during the said Personal Hearing either online or in person.
5. I have taken into consideration all the materials placed on record in respect of the application including the submissions made by the applicant during the course of personal hearing. I have gone through the response received from the Nhava Sheva-III, JNCH. I therefore proceed to decide the present application on the basis of the information on record as well as the existing legal framework.
In view of the provisions of sub-section (2) of Section 2811 of the Customs Act, 1962 already submitted by Nhava Sheva-III, INCH in their comments to the instant application, I concur with the submissions of Nhava Sheva-III, JNCH that “the Advance Ruling application has been filed for clarification in respect of applicability of Viscose Staple Fibres (Quality Control) Order, 2022, which mandates mandatory BIS certification and compliance as per IS 17266 :2019 for Viscose staple Fibres on the products being imported by the applicant i.e. Viscose Staple Fibres (HSN 55041011) of Deniers other than 1.2 to 1.7.
The said question does not fall under the ambit of any parameter, on which the Advance Ruling can be sought”.
I find that the views expressed above by the Jurisdictional Commissionerate is in conformity with Section 28 (H) of the Customs Act, 1962.
On the basis of the foregoing discussions, I hereby reject this application inasmuch as there no such jurisdiction is vested in this authority as per the mandate of Chapter VB of the Customs Act, 1962.
The application is disposed of accordingly.
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