2023 (9) TMI 1502 - AAR - GST

Applicant withdraws advance ruling application on input tax credit eligibility after filing withdrawal request

The AAR-TN disposed of an advance ruling application as withdrawn upon the applicant's request dated 12.09.2023. The applicant sought withdrawal of their ... Request for withdrawal of Advance Ruling Application - eligibility of ITC - HELD THAT:- The letter dated 12.09.2023 of the Applicant is taken on record, wherein they have stated that they have decided to withdraw the ARA application filed by them. As the Applicant has requested for withdrawal of their Advance Ruling Application, their request is considered and the application is treated as withdrawn without going into the merits or detailed facts of the case. The ARA Application filed by the Applicant seeking Advance Ruling is disposed as withdrawn as per the request of the Applicant. Issues:1. Applicability and binding nature of Advance Ruling2. Interpretation of law and facts regarding the proposed transaction3. Eligibility for input tax credit4. Remarks from jurisdictional authorities5. Request for withdrawal of Advance Ruling applicationApplicability and binding nature of Advance Ruling:The Advance Ruling Authority stated that any appeal against the ruling should be filed within 30 days. The ruling is binding on the applicant and the concerned officer unless there are changes in law, facts, or circumstances. If the ruling is obtained through fraud or misrepresentation, it can be declared void ab initio. The provisions of the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are considered the same unless specified otherwise.Interpretation of law and facts regarding the proposed transaction:The Applicant, engaged in importing and selling IT products, proposed importing goods into a FTWZ in Chennai and selling them to Resellers in Bangladesh, Sri Lanka, or India. They argued that the transaction should not be subject to IGST as per specific provisions and clarifications by the Government of India. They also cited rulings by TN AAR with similar facts to support their position. The Applicant claimed entitlement to input tax credit on inputs used for such sales.Eligibility for input tax credit:The Applicant sought clarification on availing input tax credit for inputs used in the proposed transactions. The jurisdictional Central Authority opined that the Applicant would not be eligible for ITC related to exempt supplies and would need to reverse proportionate credit as per relevant provisions.Remarks from jurisdictional authorities:The Central Authority supported the Applicant's position on IGST applicability but indicated that ITC related to exempt supplies would need to be reversed. The State Authority did not provide any remarks, implying no pending proceedings on the issue in the Applicant's case.Request for withdrawal of Advance Ruling application:The Applicant requested to withdraw the Advance Ruling Application before a scheduled personal hearing. The Authority accepted the withdrawal request without delving into the case's details.In conclusion, the Advance Ruling Application filed by the Applicant was disposed of as withdrawn based on their request, without a detailed examination of the case's merits.