Scope Of Appeal Is Limited U/S 28KA Customs Act; Advance Ruling Binding Unless Arbitrary: Madras High Court

Section 28KA of the Customs Act, 1962 provides that an appeal can be filed to the appellate authority against any ruling or order passed by the Authority within sixty days from the date of communication of such ruling or order.

Justices S.M. Subramaniam and C. Saravanan stated that the scope of appeal under Section 28KA of the Customs Act, 1962, is limited, as the ruling obtained is binding on the persons mentioned in Section 28J of the Customs Act, 1962. Unless the ruling of the Authority is palpably arbitrary or irrational or without any proper reasoning, they cannot be interfered by this Court under Section 28KA of the Customs Act, 1962.

In this case, the appeal has been filed by the assessee/appellant under Section 28KA of the Customs Act, 1962, against the Ruling of the Customs Authority for Advance Ruling.

The Customs Authority has held that the “Assy Guide Rails” were classifiable under Heading under Customs Tariff Heading 8708 2900 of the Customs Tariff Act, 1975.

The assessee/appellant submitted that the subject goods i.e. an Assy Guide Rails, will be used in the manufacture of the sunroof system of an automobile. The subject goods in a sunroof assembly are a long, narrow track that provides support and guidance for the sunroof panel as it slides open and closed.

The assessee submitted that Assy Guide Rail is classifiable under Customs Tariff Heading 8708 99 00 of the First Schedule of the Customs Tariff Act, 1975, as “parts of motor vehicles or otherwise”.

On the other hand, the Authority has concluded that it is classifiable under CTI 8708 (Parts and accessories of motor vehicles of headings 8701 to 8705), more specifically under Customs Tariff Heading 8708 29 00 as other parts and accessories of bodies of motor vehicles to the First Schedule of Customs Tariff Act, 1975, as it is specifically designed for use in motor vehicles.

The bench observed that, as per sub-section (2) of Section 28J of the Customs Act, 1962, the Advance Ruling referred to above in sub-section (1) has to remain in force for a period of three years. If there is a change in law or facts on the basis of which the Advance Ruling was given, such Advance Ruling will cease to be in force before expiry of the aforesaid period of three years.

The bench opined that the appellant cannot expect the said Authority to accept the contention merely because an application has been made for such Advance Ruling. The purpose of Advance Ruling is only to ensure that the clarification issued is binding for a period of three years or for a lesser period, where there is a change in law or facts on the basis of which such Advance Ruling was pronounced by the said Authority.

The appellant, having invited a ruling, cannot challenge the Ruling under Section 28KA merely because the Ruling has been given against the appellant, stated the bench.

In view of the above, the bench dismissed the appeal.

Case Title: M/s. Inalfa Gabriel Sunroof Systems Pvt. Ltd. v. Customs Authority for Advance Ruling, Mumbai

Citation: 2025 LiveLaw (Mad) 322

Case Number: C.M.A.No.2553 of 2025

Counsel for Appellant/Assessee: Mr. S. Ganesh Aravindh

Counsel for Respondent/Department: Mr. Rajendran Raghavan

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