(1) The Commissioner may constitute an 'Authority' for Advance Ruling, consisting of at least one Additional Commissioner or Joint Commissioner, one Zonal Collector and one Deputy Commissioner (Legal) or Assistant Commissioner (Legal) to clarify the rate of tax in respect of any goods or the eligibility to tax of any transaction or eligibility of deduction of input tax or liability of deduction of tax at source under the Act, in respect of any case or class of cases as the Commissioner may specify.

(2) Any registered dealer seeking advance ruling under this section, shall make application to the Authority in such form, accompanied by proof of payment of such fee and paid in such manner as may be prescribed.

(3) On receipt of application, the Authority shall cause a copy thereof to be forwarded to the Assessing Authority concerned and call for its findings on the question raised and any other information or records as required by it.

(4) The Authority may, after examining the application and any records called for, by order, either admit or reject the application:

Provided that the Authority shall not allow the application where the question raised in the application,-

(i) is already pending before any officer or other authority of the Department or Appellate Tribunal or any Court; or

(ii) relates to a transaction or issue which is designed apparently for the avoidance of tax:

Provided further that no application shall be rejected under this sub-section unless an opportunity of being heard is given and where the application is rejected, reasons for such rejection shall be recorded in the order.

(5) The question on which the advance ruling may be sought shall be in respect of,-

(a) classification of any goods under the Act;

(b) applicability of a notification issued under the provisions of the Act having a bearing on the rate of tax;

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

(d) notifications issued, in respect of tax under the Act;

(e) admissibility of input tax credit of tax paid or deemed to have been paid;

(f) determination of the liability to pay tax on any goods under the Act; or

(g) whether applicant is required to be registered under the Act;

(6) No proceedings before the Authority (including the pronouncement of advance ruling) under this section shall be questioned or shall be invalid on the ground merely of the existence of any vacancy or defect in the constitution of the Authority.

(7) A copy of every order made under sub-section (4) shall be sent to the applicant and the officer concerned.

(8) Where an application is admitted under sub-section (4), the Authority shall, after examining such further material as may be placed before it by the applicant or obtained by the Authority, pass such order as deems fit on the questions specified in the application, after giving an opportunity of being heard. The Authority shall pass order within ninety days of the receipt of application and a copy of such order shall be sent to the applicant and the officer concerned.

(9) The order of the Authority shall be binding only,-

(i) on the applicant who seeks the advance ruling;

(ii) in respect of the goods or transaction in relation to which it is sought; and

(iii) in the proceedings before the officers of the Department (other than the Commissioner and the Appellate Tribunal) relating to such applicant.

(10) The order passed under sub-section (8) shall be binding as aforesaid unless there is a change in law or facts on the basis of which the order was passed.

(11) Where the authority, on a representation made to it by any officer or otherwise find that an order passed by it was obtained by fraud or mis-representation of facts, it may, by order, declare such order to be void-ab-initio, and thereupon, all the provisions of the Act shall apply to the applicant, as if, such order had never been passed.

(12) The Authority shall, for the purpose of exercising its powers regarding discovery and inspection, enforcing the attendance of any person and examining him on oath, issuing commissions and compelling production of books of account and other records, have all the powers of a civil court under the Code of Civil Procedure, 1908 (5 of 1908).

(13) The Authority shall be deemed to be a civil court for the purposes of section 195, (2 of 1974) but not for the purposes of Chapter XXVI of the Code of Criminal Procedure, 1973, and every proceedings before the Authority shall be deemed to be a judicial proceedings within the meaning of sections 193 and 228 (45 of 1860) and for the purpose of section 196 of the Indian Penal Code.

Explanation.-

For the purpose of this section,-

(i) 'Advance Ruling' means the determination, by the Authority, of a question specified under sub-section (1) and (5) of this section; and

(ii) 'Authority' means the Authority for advance ruling constituted under sub-section (1) of this section.