Case nº Ruling No. AAR/28(Cus)/2006 in Application No. AAR/02(Cus)/2006 of Authority for Advance Rulings, August 29, 2006 (case Akash Jain Vs Commissioner of Customs (Prev.), Amritsar and Commissioner of Customs (Prev.), Lucknow)

Judge:For Appellant: Kamal Mehta, Adv. and For Respondents: A.K. Roy, Joint CDR, New Delhi, Sanjay Saran, Addl. Commissioner, Amritsar and Gaurav Kumar, Jt. Commissioner, Lucknow
President:Syed Shah Mohammad Quadri, Chairman, Somnath Pal and B.A. Agrawal, Members
Defense:Customs Act, 1962 - Sections 25(1) and 28H; Customs Tariff Act, 1975 - Section 3
Resolution Date:August 29, 2006
 
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Order:

(Central Excise, Customs And Service Tax)

Somnath Pal, Member

  1. The applicant, who is setting up a joint venture with non-resident M/s Uniexcel Ltd. Far East International Plaza, Room No. 1206, No. 83, Loup Shah Guan Rd., Changning District New Town Centre, Shanghai, China-200336, has filed this application seeking advance ruling on three questions. In Annexure-l to the application, the applicant has stated that the non-resident is interested in setting up a knitting/textile unit in India and for this purpose he is interested in having a joint venture with the applicant who is a resident in India. The proposed unit requires consumption of Wool as raw material and therefore they are keen in taking the benefit of Customs Notification Nos. 38/96 and 63/94 for importing duty free wool from China from Gunji in Pithoragarh, Uttaranchal or Village Namgaya, Shipkila in Kinnaur District of H.P. The unit will be set up in Baddi, H.P. or in Haryana with an estimated investment of US $ 2 millions in machinery.

    In Annexure-II to the application, the applicant has submitted that import of wool is allowed under OGL (Open General Licence). By Notifiation No. 63/94, Government of India has set up Gunji in Uttaranchal and Village Namgaya Shipkila in H.P. as Customs Notified Stations for import/export of permitted goods or services. By Notification No. 38/96, Government of India has exempted from import duty (both basic plus CVD) on wool if imported from these stations from China. The applicant has enclosed copies of these two notifications alongwith their application. The applicant has further stated that the plain reading of the two notifications does not put any limitations on the class of persons who can import through these stations nor does it put any limitation on the use of goods so imported for taking benefit of duty exemption. In the light of the above the applicant has raised the following three questions for getting advance rulings thereon:

    (a) Are we allowed to import through these stations in view of notification No. 63/94?

    (b) If we import wool from these stations, i.e. Gunji in Uttranchal or Village Namgaya Shipkila in H.P., will we get the benefit of duty free import under notification No. 38/96?

    (c) Is there any limitation under these notification regarding the actual user of the goods so imported. Means, if we import duty free wool from these station, can we sell the surplus in open market, if so desired?

  2. In his comments, the...

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