Lakshmi Kumaran & Sridharan AttorneysAn ISO 9001 / 27001 certified law firm

Budget 2013 – Advance Rulings provisions set to be widened

14th March, 2013

Advance Rulings provisions in Central Excise and Customs are set for certain major changes. The amendments proposed by the Finance Bill 2013 include redefining the ‘activity’ to enhance the scope of the Advance Rulings provisions to cover new businesses proposed to be undertaken by the existing importers, exporters and producers/manufacturers. 

Applicants will be able to take the benefit of Advance Rulings for their proposed line of business also even when they are in the business of importing, exporting or producing/manufacturing different products. On the Excise side, as per proposed amendment in Section 23C of Central Excise Act, 1944, admissibility of Cenvat credit of Service tax paid on input services is also proposed to be covered under the application for Advance Rulings. 

Clauses 58, 85 and 86 of the Finance Bill 2013 seek to amend the Customs as well as Central Excise Acts in this regard. These changes would come into effect on the date of enactment of the Finance Bill. 

Under Central Excise, with effect from 1-3-2013, resident public limited companies have also been made eligible for availing advance rulings. Notification No. 4/2013-C.E. (N.T.), dated 1-3-2013 defines ‘public limited company’ and ‘resident’. Such companies were earlier allowed the benefit of Advance Rulings under the Customs law in 2011. 
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