Case Law Details
In Re M/s. Solae Company India Private Limited (CAAR Mumbai)
On scrutiny of the application and annexure/submission thereto submitted by the applicant, it is observed by CAR Mumbaithat although the address provided by the applicant i.e. 15-45, National Highway 4B, Panvel- JNPT Highway, Village-Padeghar, District Raigad, Taluka Panvel, Maharashtra-410206 falls under the jurisdiction of CAAR, Mumbai but from the agreement referred above it can’t be construed as the office address of the applicant. However, an address i.e. 6th Floor, Tower C, DLF Cyber Greens, Sector-25a, DLF City Phase III, Gurgaon, Gurugram, Haryana, 122002 provided in the said application falls under the jurisdiction of the CAAR, Delhi, in terms of regulation 6 of the CAAR Regulations, 2021. I have also observed that the applicant’s address on the IEC registration is also the same i.e. 6th Floor, Tower C, DLF Cyber Greens, Sector-25a, DLF City Phase III, Gurgaon, Gurugram, Haryana, 122002. Attempt of the applicant to falsely project their logistics service provider’s address as their office address and the same as falling under the jurisdiction of CAAR, Mumbai requires rejection of application on the grounds of jurisdiction alone as per provisions of Regulation 6 of Customs Advance Ruling Regulations, 2021 read with provisions of Section 28 H of the Customs Act, 1962.
Further, it is pertinent to mention here that upon amendment to the section 28 (4) of the Customs Act 1962, by the Finance Act 2022, the stated subsection reads as:
“An applicant may withdraw his application at any time before an advance ruling is pronounced.”
However, applicant has not submitted any such withdrawal application.
In view of the foregoing discussion CCAR-1 application of the applicant M/s Solae Company India Private Limited is hereby rejected on the ground of lack of jurisdiction with an observation that the applicant has to file the application for seeking advance ruling under section 28-H of the Customs Act 1962 before proper jurisdictional Advance Ruling Authority i.e. CAAR Delhi.
FULL TEXT OF THE ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, MUMBAI
M/s Solae Company India Private Limited (hereinafter referred to as ‘the applicant’) having address at 6th Floor, Tower C, DLF Cyber Greens, Sector-25A, DLF City Phase III, Gurgaon, Gurugram, Haryana, 122002, PAN No. AAHCS9328P filed an application on 20.03.23, received in the office of Advance Ruling Authority, Mumbai on 21.03.23, seeking an advance ruling under section 28-H of the Customs Act, 1962 from the Customs Authority for Advance Rulings, Mumbai (CAAR in short). The applicant is seeking advance ruling as under:
a) Question 1: Whether Supra Nuggets 570 G IP proposed to be imported by the Applicant is classifiable under Tariff Item 35040091 of the First Schedule to the Customs Tariff Act, 1975 (hereinafter referred to as “the Tariff”)?
b) Question 2: If the answer to the above question is in the negative, then what is the appropriate classification of Supro Nuggets 570 G IP soy protein nuggets under the Tariff?
2. In this regard, a personal hearing was held on 12.05.2023 in which Shri Bharath Menon, Advocate for M/s Lakshmikumaran & Sridharan Attorneys engaged by M/s Solae Company India Private Limited (“Applicant”) appeared on applicant’s behalf and explained in details the contents of the CAAR-1 application. During the course of hearing two queries were raised by the Customs Authority for Advance Rulings, Mumbai on
(1) the nature of goods and why are they called nuggets, and
(2) veracity of applicant’s address from the standpoint of jurisdiction of Customs Authority for Advance Ruling.
3. A letter dated 18.05.23 from the applicant was received in this office enclosing submissions regarding the above cited two queries and the contents of the letter are reproduced verbatim as under:
i. “Meaning and Purport of the term “Nuggets” as used in the name of the product.”
It is clarified that the word “Nuggets”, as used in the product name and in the Advance Ruling Application, has been used to refer to shape of the product in question and has nothing to do with its chemical composition. The ingredients statement in the product brochure of Supro Nuggets 570 G IF enclosed with the Application would go on to show that the sole ingredients in the product is “isolated soya protein”. As evident from the image of the product, the product in question is of small round pieces and hence the same is referred to as soya Protein Nuggets. From the definitions given in various international dictionaries it is evident that the term Nugget is used for the shape of the product to denote it is in the shape of small round pieces. This is also evident from the product analysis section of the product brochure, enclosed with the advance ruling application, which describes the product appearance as “Oval Rice grain shape”. It is reiterated that the use of the word “Nugget” has nothing to do whatsoever with the composition or content of the imported product and is only demonstrative of its shape_
ii. “The Applicant has had its presence in Mumbai since 2020”
It is submitted that the Applicant is part of the renowned Danisco group and has had its presence in Mumbai, at the location mentioned in the Application, since 2020. The Applicant has also been regularly importing goods through the ports in Mumbai since 2020. The documents evidencing the applicant’s presence in Mumbai is enclosed herewith as Annexure-l. The same shows that since 2020, the applicant is operating in the said premises in Mumbai, and the said premises is not something which has just been created now. for the purposes of filing the present application.
4. I have perused the contents of the CAAR-1 application. While examining these contents I have gone through the Annexure-1 enclosed with their CAAR-1 application which is an “Agreement for clearing and forwarding agency” between the applicant company (M/s Solae Company India Private Limited) and private logistics service provider M/s JWL Cold Storage Private Limited (also referred as JWL, service provider, CFA in the subject agreement), a company organised and existing under laws of India having its registered office at 15-45, National Highway 4B, Panvel- JNPT Highway, Village-Padeghar, District Raigad, Taluka Panvel, Maharashtra-410206. In order to understand the scope of agreement the second para on the second page of the said agreement is reproduced below: –
“SOLAE wished to appoint JWL as a non-exclusive Clearing and Forwarding Agent and the CFA being willing and competent is agreeable to be so appointed on terms and conditions contained”.
5. I have gone through the said agreement. First and foremost, I find that the copy of agreement entered in to in year 2020 was valid for only one year i.e. up to 31 July 2021. But more importantly I also observe from its contents that M/s JWL Cold Storage Private Limited has basically agreed to provide services of warehousing, inventory accounting, goods’ security, organizing and reporting inward and outward movement of the goods and secretarial assistance as a part of logistics support services stipulated in the para 3 of the said agreement to the applicant. On scrutiny of the subject agreement it is also observed that said agreement contains various other responsibilities/assignments for JWL regarding safekeeping /title /sanitisation /taxes /safety and health/insurance/inspection etc. An agreement with the logistics service provider — clearing & forwarding agent – is used by the applicant to project that their office address is falling under the jurisdiction of CAAR, Mumbai. But said agreement doesn’t contain any facts/information which establishes JWL premises or any part thereof as an office address of applicant company M/s Solae Company India Private Limited, Gurugram, Haryana.
6. On scrutiny of the application and annexure/submission thereto submitted by the applicant, it is evident and I am of the view that although the address provided by the applicant i.e. 15-45, National Highway 4B, Panvel- JNPT Highway, Village-Padeghar, District Raigad, Taluka Panvel, Maharashtra-410206 falls under the jurisdiction of CAAR, Mumbai but from the agreement referred above it can’t be construed as the office address of the applicant. However, an address i.e. 6th Floor, Tower C, DLF Cyber Greens, Sector-25a, DLF City Phase III, Gurgaon, Gurugram, Haryana, 122002 provided in the said application falls under the jurisdiction of the CAAR, Delhi, in terms of regulation 6 of the CAAR Regulations, 2021. I have also observed that the applicant’s address on the IEC registration is also the same i.e. 6th Floor, Tower C, DLF Cyber Greens, Sector-25a, DLF City Phase III, Gurgaon, Gurugram, Haryana, 122002. Attempt of the applicant to falsely project their logistics service provider’s address as their office address and the same as falling under the jurisdiction of CAAR, Mumbai requires rejection of application on the grounds of jurisdiction alone as per provisions of Regulation 6 of Customs Advance Ruling Regulations, 2021 read with provisions of Section 28 H of the Customs Act, 1962.
6.1 Further, it is pertinent to mention here that upon amendment to the section 28 (4) of the Customs Act 1962, by the Finance Act 2022, the stated subsection reads as:
“An applicant may withdraw his application at any time before an advance ruling is pronounced.”
However, applicant has not submitted any such withdrawal application.
7. In view of the foregoing discussion CCAR-1 application of the applicant M/s Solae Company India Private Limited is hereby rejected on the ground of lack of jurisdiction with an observation that the applicant has to file the application for seeking advance ruling under section 28-H of the Customs Act 1962 before proper jurisdictional Advance Ruling Authority i.e. CAAR Delhi.
