TaxTMI 
TaxTMI 
2025 (6) TMI 329
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....epresentation 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 services are provided to M/s. Saravana Stores, a partnership firm. The applicant is lendi....
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....ns 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 credit is to give benefit to the assesse out of the investments on which he has paid GST on the rental income arising out of the investment on which GST was paid and it is required to have the ITC to pay GST. 5. Only, Assistant Commissioner, Chrompet Assessment Circle ha....
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....on 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 * Air Conditioner * Furniture & Fittings * Glass materials * Computer, Printer, scanner and Network items * Racks * Electrical Bulbs and Other fittings * Generator and other fittings * Cameras and CCTV * Chandeliers * Electrical Transformers * Aquastic 7.6 As per the Show Cause Notice, the intelligence gathered is with regard to irregular availm....
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....f 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 same has been used. Section Referred as Context/Phrase 6 (2) (b) Any proceedings Cross jurisdiction - "has initiated any proceedings on a subject matter" Proviso to 29 (1) and 29 (2) The proceedings Cancellation or Suspension - "during pendency of the proceedings relating to cancellation of registration" 66 (1) Any other proceedings Special Audit - "If at any stage of scrutiny, inquiry, investigation or any other proceedings before him" 67 (2) Any proceedings Power of inspection, search and seizure - "which in his opinion shall be useful for o....
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....t 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 that the same also denotes proceedings prior to the issue of show cause notice, or proceedings which may not culminate in the issue of any show cause notice at all. Investigation is activated when there is enough predication to show that there is an alleged tax evasion and the essence of investigation is to carry out an in-depth review of the taxpayer's records and activities to ensure that the tax due to the Government is not lost in evasion. Therefore, the commencement of investigation or inquiry is to be seen as the start of a proceeding to safeguard Government revenue. 11. Apart from the above, it may be seen that while the term 'any proceedin....