2018 (10) TMI 448 - AAR - GST

Port Trust's GST refund application rejected by Advance Ruling Authority for lack of jurisdiction

The port trust's application seeking clarification on continuing to pay GST on disputed claims and claiming refunds post a prolonged dispute was rejected ... Scope of advance ruling under Section 97(2) - jurisdiction of Advance Ruling Authority - liability to pay tax on disputed claims - admissibility of refund for tax paid pending dispute - rejection of application for lack of jurisdiction under Section 98(2)Scope of advance ruling under Section 97(2) - jurisdiction of Advance Ruling Authority - Whether the Advance Ruling Authority could decide questions whether the applicant shall continue to pay GST on disputed lease claims and the applicant's entitlement to refund if the dispute is decided in favour of the lessees after a lapse of time. - HELD THAT: - The Authority examined the matters enumerated in Section 97(2) and held that its jurisdiction is confined to the specific categories listed therein. The questions raised by the applicant-continuation of payment of GST on disputed claims and the mechanism to claim refund if the dispute is finally decided in favour of the lessees after years-do not fall within any of the heads enumerated under Section 97(2). Consequently, these queries are outside the legal domain entrusted to the Advance Ruling Authority and cannot be decided by it. For these reasons the Authority declined to enter into the merits of the dispute and found itself without jurisdiction to grant the reliefs sought by the applicant. [Paras 5, 6, 7, 8]Application rejected for want of jurisdiction; the Authority cannot adjudicate on whether GST must be paid on disputed claims or on the applicant's refund entitlements, and the application is dismissed under sub-section (2) of Section 98.Final Conclusion: The Advance Ruling Authority declined to adjudicate the applicant's queries concerning continuation of GST payment on disputed lease amounts and entitlement to refund if disputes are decided later, holding those questions fall outside the scope of Section 97(2); the application was rejected under Section 98(2) for lack of jurisdiction. Issues Involved:- Whether the applicant shall continue to pay GST on disputed claimsRs.- How is it possible for the applicant to claim a refund for GST paid out of pocket if the dispute concludes in favor of the lease holder after a period of two or more yearsRs.Analysis:1. The applicant, a port trust, owns land leased to various organizations. Disputes arose regarding revised lease rates, with some lessees, including government undertakings, challenging the rates. The applicant continued to pay GST out of pocket despite non-payment by lessees for the disputed amount.2. The applicant sought clarification on whether they should continue paying GST on disputed claims and how to claim a refund if the dispute favors the lessee after a prolonged period. The Advance Ruling Authority considered the submissions and the legal framework under the CGST Act, 2017, and the GGST Act, 2017.3. Section 97(2) of the CGST Act, 2017, and the GGST Act, 2017, delineate the issues within the purview of the Advance Ruling Authority. These include classification of goods or services, applicability of notifications, determination of supply time and value, input tax credit admissibility, tax liability determination, registration necessity, and defining a supply of goods or services.4. The issues raised by the applicant did not align with those specified under Section 97(2) of the Acts. The question of continuing to pay GST on disputed claims and refund claims post a prolonged dispute did not fall under the Authority's jurisdiction for advance rulings.5. The Authority, established under the Gujarat Goods and Services Tax Act, 2017, operates within the legal confines set by the Act. As the issues raised by the applicant were beyond the scope of Section 97(2) of the Acts, the Authority lacked jurisdiction to address these matters, leading to the rejection of the application without delving into the case's merits.6. The application by the port trust for an Advance Ruling was rejected based on the lack of jurisdiction to decide on the questions of refund claims and the continuation of GST payment on disputed claims, as these matters were not within the ambit of issues earmarked for the Advance Ruling Authority under the CGST Act, 2017, and the GGST Act, 2017.