Budget Changes on Authority for Advance Ruling (AAR)

It is proposed to merge the Authority for Advance Ruling (AAR) for Income-Tax with AAR for Customs, Central Excise and Service Tax; and create common AAR. It is also proposed to amend the qualifications for appointment of Chairman and Members.

Above mentioned provisions as given in Draft Finance Bill 2017 is as given below:

‘(e) “Authority” means the Authority for Advance Rulings constituted under section 245-O of the
Income-tax Act, 1961;’.
93. In the Customs Act, for section 28F, the following section shall be substituted, namely:––
“28F. (1) Subject to the provisions of this Act, the Authority for Advance Rulings constituted under
section 245-O of the Income-tax Act, 1961 shall be the Authority for giving advance rulings for the
purposes of this Act and the said Authority shall exercise the jurisdiction, powers and authority
conferred on it by or under this Act:
Provided that the Member from the Indian Revenue Service (Customs and Central Excise), who
is qualified to be a Member of the Board, shall be the revenue Member of the Authority for the
purposes of this Act.
(2) On and from the date on which the Finance Bill, 2017 receives the assent of the President,
every application and proceeding pending before the erstwhile Authority for Advance Rulings (Central
Excise, Customs and Service Tax) shall stand transferred to the Authority from the stage at which
such application or proceeding stood as on the date of such assent.”.

‘(e) “Authority” means the Authority for Advance Rulings as defined in clause (e) of section 28E
of the Customs Act, 1962;’.
112. In the Central Excise Act, section 23B shall be omitted.
113. In the Central Excise Act, in section 23C, in sub-section (3), for the words “two thousand and
five hundred rupees”, the words “ten thousand rupees” shall be substituted.
114. In the Central Excise Act, in section 23D, in sub-section (6), for the words “ninety days”, the
words “six months” shall be substituted.
115. In the Central Excise Act, after section 23H, the following section shall be inserted, namely:—
“23-I. On and from the date on which the Finance Bill, 2017 receives the assent of the President,
every application and proceeding pending before the erstwhile Authority for Advance Rulings (Central
Excise, Customs and Service Tax) shall stand transferred to the Authority from the stage at which
such application or proceeding stood as on the date of such assent.”.

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