2020 (1) TMI 521 - AAR - GST

Authority rules against admission of application on Notification No. 31/2017, based on Section 98(2) of CGST Act.

The Authority unanimously ruled that the application regarding the applicability of Notification No. 31/2017, dated 13th Oct., 2017 would not be admitted. ... Advance ruling admissibility - Authority's power to admit or reject application after examination and hearing - Non-admission where the question raised is pending or decided in other proceedingsAdvance ruling admissibility - Non-admission where the question raised is pending or decided in other proceedings - Application for advance ruling was not admissible because the question raised was already pending with the State Tax authorities. - HELD THAT: - The Authority examined the applicant's request and the record, including communication from the Joint Commissioner indicating that proceedings on the same issue were pending before the State Tax authorities. Under the provision empowering the Authority to admit or reject applications after examination and hearing, the proviso to Section 98(2) precludes admission of an application where the question raised is already pending or decided in any proceedings in the case of the applicant. Having found that the identical question is the subject of pending proceedings, the Authority declined to admit the application and did not proceed to determine the substantive question whether the notification applied to the applicant. [Paras 8, 9]Application for advance ruling rejected (not admitted) because the question raised is pending with the State Tax authorities.Final Conclusion: The Authority refused to admit the applicant's request for an advance ruling on the applicability of Notification No. 31/2017, on the ground that the question raised was already pending before the State Tax authorities; the application was therefore rejected under the proviso to Section 98(2). Issues:- Applicability of Notification No. 31/2017, dated 13th Oct., 2017 on the ApplicantAnalysis:The case involved M/s. Wave Distilleries and Breweries Ltd., engaged in bottling alcoholic beverages for other companies. The applicant sought clarification on the applicability of Notification No. 31/2017, dated 13th Oct., 2017. The application was forwarded to the Jurisdictional GST Officer for comments, and a personal hearing was granted to the applicant. During the hearing, the applicant's representative submitted written explanations for consideration.Upon reviewing the submissions and the pending case against the applicant related to tax calculation and legal proceedings, the Authority referred to Section 98(2) of the CGST Act, 2017. This section states that the Authority may admit or reject an application after examination, hearing, and review of records. However, the Authority cannot admit an application if the question raised is already pending or decided in any proceedings under the Act for the applicant.In this case, the Authority unanimously ruled that the application regarding the applicability of Notification No. 31/2017, dated 13th Oct., 2017 would not be admitted. This decision was based on the provision of Section 98(2) of the CGST Act, 2017, as the question raised in the application was already pending with the State Tax authorities in Aligarh.