2018 (7) TMI 1486 - AAR - GST

Levy of GST - slump sale - stock which is part of slump sale - Held that - The Applicant requested to permit them to withdraw the application filed for advance ruling vide their letter dated 17.04.2018, even prior to personal hearing - The application filed by the Applicant for advance ruling is dismissed as withdrawn.

Summary

Issues:
1. Application for advance ruling under Section 97 of CGST Act, 2017, KGST Act, 2017 & IGST Act, 2017.
2. Applicability of GST for slump sale.
3. GST applicability on stock part of slump sale.
4. Request for withdrawal of the application before personal hearing.

Analysis:
1. The case involves an application for advance ruling under Section 97 of CGST Act, 2017, KGST Act, 2017 & IGST Act, 2017 by M/s Zenith Controls & Systems Private Limited, a manufacturer & service provider of Attendance Recording System, Access Control System. The Applicant sought clarification on the applicability of GST for a slump sale and GST applicability on stock involved in the slump sale.

2. The Applicant, in this case, intended to sell their entire business to another entity as a going concern. This triggered the query on the GST implications of such a transaction, specifically regarding the concept of slump sale. The Authority was tasked with determining the GST treatment concerning the transfer of the business as a whole.

3. The Applicant, subsequently, requested the withdrawal of the application for advance ruling before the personal hearing. Despite the initial request for clarification on GST aspects related to the slump sale and stock involved, the Applicant decided to withdraw the application, leading to the dismissal of the application by the Authority.

4. In the final ruling, the Authority dismissed the application as withdrawn, as per the Applicant's request to withdraw the application before the personal hearing. This indicates that the Authority did not provide a specific ruling on the GST implications of the slump sale and stock involved due to the withdrawal of the application by the Applicant.

This detailed analysis of the judgment highlights the key issues involved in the application for advance ruling and the subsequent withdrawal of the same by the Applicant before any final determination by the Authority.