InApplication No. VIII/CAAR/Delhi/Sunmarg/15/2023 -AAR- AAR (Delhi) rejects Sunmarg Consultancy LLP’s advance ruling application seeking uniform valuation of goods for clearance across ports
Member Samar Nanda [02-08-2023]

Read Order: In re: Sunmarg Consultancy LLP

Chahat Varma

New Delhi, August9, 2023: The Delhi bench of the Customs Authority for Advance Rulings has rejected Sunmarg Consultancy LLP’s (applicant) application for advance ruling, stating that the purpose for which the ruling was sought, which was to establish a uniform valuation of the goods across all ports for clearance, did not align with the provisions of Sub-section (2) of Section 28H of the Customs Act, 1962.

The applicant, sought an advance ruling in relation to the import of rags made from cotton, woollen, and synthetic materials falling under the ITC HS code 6310. Specifically, they requested a determination of the assessable value for calculating the basic customs duty and cess on the imported rags under the HSN code 6310.

The Authority held that based on the applicant's submissions, it was clear that the purpose for seeking the ruling was to establish a uniform valuation of the goods across all ports for clearance. However, the provision in sub-section (2) of section 28H of the Customs Act pertained to the questions for which advance rulings can be sought. Under clause (c) of this sub-section, the question should relate to the principles governing the determination of the value of goods as per the Act.

In light of these considerations, the Authority found that the application lacked merit and rejected the applicant's application.