Definitions [Section 28E]

Definitions [Section 28E] :

(a) “Activity” means import or export and includes any new business of import or export proposed to be undertaken by the existing importer or exporter, as the case may be.

(b) “Advance ruling” means the determination, by the Authority, of a question of law or fact specified in the application regarding the liability to pay duty in relation to an act ivity which is proposed to be undertaken, by the applicant.

(i) (a) a non-resident setting up a joint venture in India in collaboration with a non-resident or a resident; or

(b) a resident setting up a joint venture in India in collaboration with a nonresident; or

who or which, as the case may be, proposes to undertake any business activity in India;

(ii) a joint venture in India; or

(iii) a resident falling within any such class or category of persons, as the Central Government may, by notification in the Official Gazette, specify in this behalf, and which or who, as the case may be, makes application for advance ruling under sub-section (1) of section 28H.

For the said purpose, Central Government has specified the following: –

(a) a resident who proposes to import goods claiming for assessment under heading 9801 (items eligible for project import) of the First Schedule to the Customs Tariff Act, 1975

(b) a public sector company

(d) a resident private limited company

(e) a resident firm

Resident: Resident shall have the same meaning as is assigned to it in section 2(42) of the Income Tax Act, 1961 so far it applies to a company.

Public sector company: A public sector company shall have the same meaning as is assigned to it in section 2(36A) of the Income-tax Act, 1961.

Public limited company: Public limited company shall have the same meaning as is assigned to “public company” in section 3(1)(iv) of the Companies Act, 1956 and shall include a private company that becomes a public company by virtue of section 43A of the said Companies Act, 1956.

Private limited company: shall have the same meaning as is assigned to “private company” in section 2(68) of Companies Act, 2013.

Firm: shall have the meaning assigned to it in section 4 of the Indian Partnership Act, 1932 and includes-

(i) the limited liability partnership as defined in section 2(1)(n) of the Limited Liability Partnership Act, 2008; or

(ii) limited liability partnership which has no company as its partner; or

(iii) the sole proprietorship; or

(iv) one person company.

Sole proprietorship: means an individual who engages himself in an activity as defined in section 23A(a) of the Central Excise Act, 1944.

One Person Company: means as defined in section 2(62) of the Companies Act, 2013.

Resident: shall have the meaning assigned to it in section 2(42) of the Income-tax Act, 1961 in so far as it applies to a resident firm.

Here, “joint venture in India” means a contractual arrangement whereby two or more persons undertake an economic activity which is subject to joint control and one or more of the participants or partners or equity holders is a non-resident having substantial interest in such arrangement.

Thus, now in case of joint venture an application for advance ruling can be made only when one of the partners is non-resident.

The collaboration would mean either technical or financial collaboration. Joint venture would mean participation by both persons. Residents in the country having joint venture with other residents are not given the benefit.

(d) “Application” means an application made to the Authority under subsection (1) of section 28H.

(e) “Authority” means the Authority for Advance Rulings (Central Excise, Customs and Service Tax) constituted under section 28F.

(f) “Non-resident” “Indian company” and “foreign company” have the meanings respectively assigned to them in clauses (30), (26) and (23A) of section 2 of the Income-tax Act, 1961.

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