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2025 (6) TMI 329
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....cant by fraud or suppression of material facts or misrepresentation of facts, shall render such ruling to be void ab initio in accordance with Section 104 of the Act. 1.0 At the outset, we would like to make it clear that the provisions of both the Central Goods and Services Tax Act and the Tamil Nadu Goods and Services Tax Act are in pari materia and have the same provisions in like matters and differ from each other only on few specific provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Services Tax Act, 2017 would also mean a reference to the same provisions under the Tamil Nadu Goods and Services Tax Act, 2017. 2.0 M/s Rare SS Properties India Pvt. Ltd, (hereinafter 'the Applicant') has made a debit in their Electronic Cash Ledger dated 13-09-2024 evidencing payment of application fees of Rs. 5,000/- each under sub-rule (1) of Rule 104 of CGST Rules 2017 and SGST Rules 2017. 3.0 STATEMENT OF FACTS AS NARRATED BY THE APPLICANT: • M/s. Rare SS Properties India Private Limited ('the Applicant') are providing Rental or leasing services falling under 997212. • The service....
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....May, 2021 and Mar, 2023 under Section 17 (5) (d) of the Act. • Quoting Section 17 (5) (d) of the Act, the applicant contended that the goods and services procured by them are not intended for constructions of building for sale. It is used to provide Renting of Immovable Property Service. • The Act was introduced with main object of avoiding the cascading effect of various indirect taxes so as to reduce its multiplicity of indirect taxes. • It is based on the VAT concept of allowing input tax credit of tax paid on inputs, input services and capital goods which can be utilized for payment of output tax to obviate the cascading effect • When the ITC is blocked, the levy of taxing chain itself will be broken at the construction stage itself. • As the building itself is used for shopping mall any amenities provided for the purpose of renting is in the process of taxation up to the stage of providing renting services. • The applicant referred Hon'ble High Court of Orissa in WP No. 20463 of 2018 to the case of M/s. Safari Retreats Pvt. Ltd., Vs. Chief Commissioner of GST also ruled that the very purpose of the c....
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....f this Act: Provided further that no application shall be rejected under this sub-section unless an opportunity of hearing has been given to the applicant: Provided also that where the application is rejected, the reasons for such rejection shall be specified in the order." 7.4 The above provision specifically states that if the question raised is already pending or decided in any proceedings, such application shall not be admitted. Therefore we have to first ascertain whether the questions raised in the application is similar or same on which proceedings have been initiated. Second, whether the proceeding precedes or succeeds the application filed by the applicant. 7.5 As per the AAR application, the applicant had sought, Clarification as to whether the input credit available on construction of building, purchase of interiors, purchase of furniture, Lift, Air-conditioner, generator and other miscellaneous goods and services which are given to provide output services of rental business. List of goods and services are - • Construction of Building • Lifts • Centralised Air Conditioner • Interior Work ....
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....cation filed online 13-09-2024 10. Advance ruling application received physically 04-10-2024 11. Show Cause -cum-Demand Notice No. 174/2024-GST 03-12-2024 8.2 From the chronology of the events above, the recovery proceedings in the form of Show cause Notice has been issued to the applicant on 03-12-2024 after completion of thorough investigation proceedings. 8.3 The first proviso to Section 98(2) restricts admission of application seeking advance ruling where the questions are already pending in any proceedings in the case of an applicant under any of the provisions of the Act. Therefore, the term 'proceedings' assumes immense significance in the context of the instant case. 8.4 Though the term 'proceedings' has not been defined under the CGST/TNGST Act, 2017, it is seen to have been widely used in the Act, ibid, either as it is, in the context of the situation, or with a prefix bringing out the meaning and purpose in an unambiguous manner like 'Recovery proceedings', 'Assessment proceedings', etc. 8.5 To mention a few, the table below lists when and where the term 'proceedings' has been referred to in the CGST Act, 2017, and in what context the sam....
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....ce, Sections 62, 63 and 64 on the other hand clearly discusses about the proceedings involving assessment, which precedes the issue of any show cause notice. In the same way, Section 70 of the Act, that talks about 'Power to summon persons to give evidence and produce documents', specifies in sub-section 2 of Section 70 as "Every such inquiry referred to in sub-section (1) shall be deemed to be "judicial proceedings within the meaning of section 193 and section 228 of the Indian Penal Code (45 of 1860).". Therefore, from the above, it becomes clear that an inquiry is to be seen as initiation of judicial proceedings, and the crucial aspect is that such proceedings precedes the issue of show cause notice. Accordingly, we are of the opinion that the moment an inquiry or investigation gets started, it amounts to initiation of proceedings under the provisions of the Act, irrespective of the fact whether it culminates in the issue of show cause notice or not, depending upon the facts and circumstances of the case. 10. In view of the above, the term 'proceedings' used in the CGST Act, 2017 is not restricted to proceedings which commence after the issue of show cause notice alone, and t....
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.... 3. Details of ITC reversal made, if any. 13. In response to the above summon and the inspection conducted by the officers of DGGI, the General Manager and Authorised Representative of the applicant had given a statement presenting the fact of availment of ITC, reversal of ITC and furnished a reply the same day that they have claimed ITC of Rs. 32 Crore availed during the period 2021-22 to 2022-23 and out of which an amount of Rs. 17,55,64,064/- pertains to Civil works service for newly constructed building at Madurai. Further they have informed that they have claimed the ITC on civil works contracts based on Gujarat High Court judgment which is pending in Supreme Court. They also furnished the month-wise details of ITC availed as per GSTR-2B and GSTR-3B as required by the officers of DGGI. 14. Subsequently, another summon dated 06.08.2024 was also issued and statement from the General Manager is obtained on 19-09-2024 resulting in issuance to Show Cause Notice No. 174/2024-GST dated 03.12.2024 requiring them to show cause as to why, total ineligible ITC of Rs. 23,22,21,333/- (IGST- Rs. 91,65,369/-, CGST - Rs. 11,15,27,982/- and SGST - Rs. 11,15,27,982/-) should not be ....