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Appeal under Custom Laws

Administrative:

The Indian Constitution has empowered only the Central Government to levy and collect income taxes. The Ministry of Finance (Department of Revenue) through the Central Board of Indirect Taxes and Customs (CBIC), an apex tax authority, implements and administers indirect tax laws. CBIC is a large organization with commissioners in charge of specified areas assisted by deputy commissioners and officers, who issue assessment orders and collect taxes.

Appeal to Commissioner:

Any taxpayer aggrieved by an order of Customer Officer can file an appeal before the Commissioner of Custom (Appeal).

Documentation:

The taxpayer required to submit the following documents before the Commissioner of Custom (Appeal):

  1. Prescribed form - Form No. C.A.-1 in duplicate (including Statement of Facts and Grounds of Appeal)
  2. One certified copy of decision or order appealed against
  3. Copy of challans of fees.

Time Limit:

The taxpayer required to submit within 60 days from the date of service of notice of demand relating to assessment or penalty order. The Commissioner (Appeals) may admit an appeal after the expiration of period of 60 days, if he is satisfied that there was sufficient cause for not presenting the appeal and submit within the period of 30 days.

Appeal Decision:

The Commissioner (Appeals) shall, where it is possible to do so, hear and decide every appeal within a period of six months from the date on which it is filed

Appeal to Appellate Tribunal:

Any taxpayer aggrieved by an order of Commissioner of Custom (Appeal) can file an appeal before the Appellate Tribunal.

Documentation:

The taxpayer required to submit the following documents before the Appellate Tribunal:

  1. Prescribed form - Form No. C.A.-3 in duplicate (including Statement of Facts and Grounds of Appeal)
  2. One certified copy of decision or order appealed against
  3. Copy of challans of fees.

Time Limit:

The taxpayer required to submit within three months from the date on which the order sought to be appealed against is communicated. The Appellate Tribunal may admit an appeal after the expiration of period of three months, if he is satisfied that there was sufficient cause for not presenting the appeal

Appeal Decision:

After the hearing is concluded, Appellate Tribunal passes order in writing, disposing of the appeal and stating the decision on each ground of appeal with reasons within 3 years from the date on which such appeal is filed.

Appeal to High Courts:

Appeal against Appellate Tribunal’s order lies with the High Court, where the High Court is satisfied that the case involves a substantial question of law. Appeal to the High Court against Appellate Tribunal’s order can be filed by the taxpayer or the Chief Commissioner/Commissioner within 180 days of receipt of the order and in the form of memorandum of appeal, precisely stating the substantial question of law involved.

Appeal to Supreme Court:

Appeal against High Court’s order in respect of Appellate Tribunal’s order lies with the Supreme Court in those cases, which are certified to be fit one for appeal to the Supreme Court. Special leave can also be granted by the Supreme Court under Article 136 of the constitution of India against the order of the High Court.

Advance Ruling:

The scheme of Advance Rulings allows non-resident investor setting up a joint venture or a wholly owned subsidiary Indian company to seek in advance a ruling from the Authority for Advance Rulings. The rulings can be sought in respect of:

  1. Classification of goods under the Customs Tariff Act, 1975;
  2. Principles of valuation under the Customs Act, 1962;
  3. Applicability, of notifications issued in respect of duties under the Customs Act, 1962, Customs Tariff Act, 1975 and any duty chargeable under any other law for the time being in force in the same manner as duty of customs leviable under the Customs Act. having a bearing on the rate of duty;
  4. Determination of origin of the goods in terms of the rules notified under the Customs Tariff Act, 1975 and matters relating thereto.

The application under FORM- AAR (CUS-I) shall be made in quadruplicate and be accompanied by a fee of Rs 10,000 (ten thousand rupees) along with the following documents:

  1. Memorandum of Understanding
  2. Letter of Intent
  3. Articles of Association
  4. Any other document
  5. Detail of Proposed Joint Venture
  6. Detail of Foreign Company
  7. Nature of activity
  8. Question of Law or fact on which Advance Ruling required

The Authority shall pronounce its advance ruling in writing within 3 months of the receipt of application.


- As on 1st July 2019