TaxTMI 
TaxTMI 
2026 (5) TMI 420
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....r may be amended by the Appellate Authority so as to rectify any error apparent on the face of the record, if such error is noticed by the Appellate Authority on its own accord, or is brought to its notice by the concerned officer, the jurisdictional officer or the applicant within a period of six months from the date of the Order. Provided that no rectification which has the effect of enhancing the tax liability or reducing the amount of admissible input tax credit shall be made, unless the appellant has been given an opportunity of being heard. 2. Under Section 103(1) of the Act, this Advance ruling pronounced by the Appellate Authority under Chapter XVII of the Act shall be binding only- (a) on the applicant who had sought it....
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....red to 'the Act') by M/s. Karthik & Co, (herein after referred to as 'Appellant'). The Appellant is registered under the GST Act vide GSTIN 33AAGFK0960KIZD. The appeal was filed by the appellant against the Order No. 46/ARA/2025 dated 17.11.2025 passed by the Tamil Nadu State Authority for advance Ruling (hereinafter referred to as 'AAR'). 3. The Appellant is a partnership company under the administrative control of 'STATE' and they are engaged in the wholesale and retail sales of paints and related products. The appellant purchases paints and other hardware from manufacturers and wholesale traders. The relationship between the paint manufacturers and wholesale traders is purely principal to principal and the manufacturer/supplier provid....
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....the course of furtherance of businesses. The appellant has stated that they have not entered into any agreement with the manufacturer and dealer/end customer. 5. We observe that in this case, the appellant had also filed a petition for condonation of delay and the delay in filing the Appeal by the Appellant has been condoned vide AAAR No. 02/2026 (AR). Now the Appeal is taken up for consideration on merits. Accordingly, an opportunity of personal hearing was accorded to the appellant. 6.PERSONAL HEARING 6.1 The appellant was given an opportunity once on 26-03-2026. The appellant expressed his inability to attend the personal hearing on the scheduled date and sought adjournment. Again, the hearing was fixed on 07-04-2026 which was h....
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.... achievement of targets. There are prior agreements between paint manufacturers and the Appellant in the form of Scheme Documents clearly mentioning the non-monetary benefits. The AR requested that the above facts be taken on record. 6.5 They referred to the Board Circular No. 251/08/2025-GST dated 12.09.2025 wherein it has been clarified that post-sale discounts offered by manufacturers to dealers shall not be treated as consideration for supply of services. 6.6 The AR also referred to the deduction of Income Tax under Section 194R in respect of benefits or perquisites but that does not imply that there is a supply being done by the appellant to the manufacturer. These benefits only help in boosting the sales of the appellant. ....
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....ance Ruling authority vide Ruling No. 46 /ARA/2025 dated 17.11.2025 pronounced the decisions that the benefits received by the appellant is 'consideration' towards 'supply of support service' and therefore would be covered under Section 7 of CGST Act, 2017. 7.4 However, we note from the appeal and the submissions made during the personal hearing that the Appellant had inadvertently mentioned certain details at the time of original application and requested to correct the same and take the following facts on record. a) The Appellant purchases from the paint manufacturers on principal-to-principal basis and on receiving the title on purchase, they sell the goods independently to various customers. b) Manufacturers extend ....