CIR NO.779/12/2004-CX, DT. 11/03/2004

Order of Authority for Advance Rulings (Customs & Central Excise) in respect of Application No.AAR/44/101/2003 dated 23.2.2004 filed by M/s.Shonkh Technologies International Ltd., NIRMAL

Authority for Advance Rulings (Customs & Central Excise) rejected the application filed by M/s.Shonkh Technologies International Ltd., NIRMAL seeking advance ruling as to whether the process proposed to be undertaken by the applicant company amounts to manufacture under Section 2(f) of the Central Excise Act, 1944 or not, at the stage of preliminary hearing itself.

2. The brief facts are that the applicant proposes to form joint venture company with M/s H.R. International, Netherlands. They are proposing to undertake an activity of manufacture of high technology registration number plates for vehicles and thereafter stamped with chrome hologram as a security feature and then a unique laser braided S. No. to be integrated to the plates. This activity was proposed to be carried out on blank number plates to be manufactured in areas availing excise duty exemption such as Himachal Pradesh, Uttaranchal, etc. The question raised for advance ruling was whether the process of customization to be carried out at various locations of RTO’s amounted to manufacture and liable for payment of excise duty or not.

3. The application was rejected at the stage of preliminary hearing consequent to an objection raised by the Department that the application is not maintainable since the question on which the Advance Ruling is sought does not fall under Section 23C of the Central Excise Act, 1944. The Advance Ruling Authority agreed with the contention of the Department and rejected the petition on the ground that the issue raised does not fall under sub-section (2) of Section 23C of the said Act. Sub-section 2 of Section 23C enumerates the following 5 categories of question on which advance ruling shall be sought:-

(a) classification of any goods under the Central Excise Tariff Act, 1985 (5 of 1986);

(b) applicability of notification issued under sub-section (1) of section 5A having a bearing on the rate of duty;

(c) the principles to be adopted for the purposes of determination of value of the goods under the provisions of this Act;

(d) notification issued, in respect of duties of excise under this Act, the Central Excise Tariff Act, 1985 (5 of 1986) and any duty chargeable under any other law for the time being in force in the same manner as duty of excise leviable under this Act;

(e) admissibility of credit of excise duty paid or deemed to have been paid on the goods used in or in relation to the manufacture of the excisable goods.

4. It was the view of the Authority for Advance Rulings that the determination of the proposed question could not be relatable to any one of the enumerated heads. Accordingly, the petition was rejected.

5. The Order is communicated for favour of information by the field formations so as to address similar issues if raised in the future before the Authority for Advance Rulings.

6. The field formations may suitably be informed.

7. Receipt of this Circular may please be acknowledged.

8. Hindi version will follow.

Yours faithfully,

(NEERAV KUMAR MALLICK)
Under Secretary (CX.6)

F.No. 221/10/2004-CX.6

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