Rejected: Advance Ruling Application by Sasan Power Ltd. for GST Issues

The Authority rejected M/s. Sasan Power Ltd.'s request for Advance Ruling under the Madhya Pradesh Goods and Services Tax Act, 2017. The application did not align with defined issues for Advance Ruling and was already under consideration by departmental authorities. The Authority found that the questions raised did not fall under the purview of Advance Ruling as defined by the Act, leading to the rejection of the application at the admission stage under Sections 97 and 98(2) of the CGST Act, 2017.

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Issues:
1. Entitlement to carry forward accumulated Cenvat credit to GST regime.
2. Adjustment/restriction of accumulated Cenvat Credit under GST regime.

Issue 1: Entitlement to carry forward accumulated Cenvat credit to GST regime

The case involved M/s. Sasan Power Ltd., engaged in electricity generation and coal extraction, seeking Advance Ruling on carrying forward Cenvat credit to the GST regime. The applicant had an unutilized Cenvat Credit balance pre-GST roll-out. The applicant used coal for power generation exempted from Central Excise duty and sold the resulting fly ash. Post-GST, the taxable event shifted to 'supply,' excluding self-use coal transfer. The applicant posed two questions: (i) Entitlement to carry forward Cenvat credit under CGST Act, 2017, and (ii) If yes, the adjustment/restriction under CGST Rules, 2017. The department confirmed the applicant's claim of credit under TRAN-1. The Authority noted the Cenvat credit issue under Section 140 of the CGST Act, 2017, and the department's scrutiny of the claimed credit in TRAN-1.

Issue 2: Adjustment/restriction of accumulated Cenvat Credit under GST regime

The Authority deliberated on the admissibility of the Cenvat credit balance from the last ER-1 filed in June 2017 under Section 140 of the CGST Act, 2017. The department had already examined the applicant's claim in TRAN-1. However, the Authority found that the question raised did not align with the issues defined for Advance Ruling under Section 97(2) of the Act. Section 97(2) pertains to input tax credit under the GST regime, not CENVAT carried forward in TRAN-1 from the pre-GST era. Additionally, Section 98(2) stipulated not admitting applications where questions were pending or decided in other proceedings. As the applicant had raised the issue before jurisdictional officers and faced audit objections, the Authority rejected the application at the admission stage under Sections 97 and 98(2) of the CGST Act, 2017.

In conclusion, the Authority rejected the applicant's request for Advance Ruling under Section 98 of the Madhya Pradesh Goods and Services Tax Act, 2017, citing that the application did not align with the defined issues for Advance Ruling and was already under consideration by the departmental authorities.

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