2019 (11) TMI 533 - AAR - GST

Application for GST classification of flavoured milk rejected due to ongoing proceedings, incomplete fee payment

The Authority rejected the application seeking an advance ruling on the classification of flavoured milk under the GST Act, as it was not admissible under ... Admissibility of advance ruling application - first proviso to Section 98(2) - application not to be admitted where question is pending before any other authority - duty to disclose pending proceedings in the advance ruling application - classification of goods under advance ruling provisionsFirst proviso to Section 98(2) - application not to be admitted where question is pending before any other authority - admissibility of advance ruling application - duty to disclose pending proceedings in the advance ruling application - Application for advance ruling held not admissible as the question raised was already pending before another authority at the time of filing. - HELD THAT: - The Authority found that the issue raised related to classification of goods and thus fell within the scope of Section 97(2)(a). However, the Joint Director, DGGI, had initiated enquiry and issued summons to the applicant prior to filing of the instant application. The authorised representative confirmed receipt of the summons and that the AAR application was preferred after initiation of proceedings by DGGI. The applicant did not disclose the pending proceedings in the application (omission at Serial No.17) and initially did not pay the full requisite fee, paying the remaining CGST portion only later. In these circumstances the Authority concluded that the application was hit by the first proviso to Section 98(2) and therefore not maintainable; accordingly the Authority declined to examine the merits of classification. [Paras 6, 7]Application rejected as not admissible in terms of the first proviso to Section 98(2) of the GST Act because the question was already pending before another authority when the application was filed.Final Conclusion: The advance ruling application of M/s. Anik Milk Products Private Limited is rejected as not admissible under the first proviso to Section 98(2) of the GST Act since the question was pending before DGGI at the time of filing; merits of classification were not considered. Issues:Classification of flavoured milk under GST Act.Analysis:1. The applicant, engaged in processing milk products, sought an advance ruling on the classification of flavoured milk under the GST Act.2. The Authority noted that an enquiry by DGGI had been initiated against the applicant regarding the classification of flavoured milk before the application was filed.3. The questions raised before the Authority pertained to whether flavoured milk is taxable at 5% under Schedule IV of the GST Act.4. During the personal hearing, the applicant's representative confirmed receipt of summons from DGGI related to the issue raised before the Authority.5. The Authority pointed out that the application was not admissible under Section 98(2) of the CGST Act as the issue was already pending before another authority.6. The applicant failed to disclose the ongoing proceedings with DGGI in the application, attempting to circumvent the provisions of Section 98(2).7. The Authority found that the application was intentionally filed after the initiation of proceedings by DGGI, and the applicant had not paid the full fee for filing the application initially.8. Consequently, the Authority rejected the application as not maintainable under the first proviso to Section 98(2) of the Act without delving into the merits of the case.9. The ruling stated that the application was rejected as it was not admissible under the first proviso to Section 98(2) of the GST Act, as the issue was already pending before another authority when the application was made.This comprehensive analysis covers the issues involved in the legal judgment regarding the classification of flavoured milk under the GST Act and the rejection of the application by the Authority due to ongoing proceedings with another authority.