In re S. S. Exports (CAAR Delhi)
The Customs Authority for Advance Rulings (CAAR), New Delhi, considered an application seeking classification of “roasted arecanuts” under the Customs Tariff. The applicant proposed to import roasted arecanuts in whole and split forms and sought a ruling on whether the goods fall under a specific tariff entry. However, upon preliminary examination, the Authority observed that the issue of classification of roasted arecanuts had already been conclusively decided by the Hon’ble Madras High Court in an earlier judgment. Accordingly, a notice was issued to the applicant regarding the maintainability of the application.
In response, the applicant acknowledged that the classification issue had been settled by the High Court and requested the Authority to record the same and refrain from issuing a fresh ruling. During the proceedings, the Authority examined Section 28-I(2) of the Customs Act, 1962, which restricts admission of applications where the question raised has already been decided by a court or tribunal.
The Authority emphasized that advance rulings are intended to provide certainty and reduce litigation, but cannot be issued on issues already settled by binding judicial precedents. It noted that such restriction is applicant-agnostic and applies even if the earlier decision involved a different party. The Authority also highlighted that allowing fresh rulings on settled issues would lead to conflicting decisions and undermine judicial discipline.
