2019 (7) TMI 846 - AAR - GST

Withdrawal of Advance Ruling application - Adjustment of service tax - mobilization advances in Pre-GST regime - HELD THAT - The application filed by the Applicant for advance ruling is disposed off as withdrawn.

Summary

Issues:
1. Advance ruling sought for adjusting Service Tax paid on mobilization advances in the pre-GST regime.

Analysis:
The case involved M/s. Urbanac Projects Private Limited, engaged in Works Contract services, seeking an advance ruling on adjusting Service Tax paid on mobilization advances in the pre-GST regime. The Applicant contended that VAT was not paid or payable on such advances due to the absence of goods transfer. The key question raised was how to adjust the Service Tax paid on mobilization advances in the pre-GST era.

The Applicant, represented by Sri. Badrinath, Chartered Accountant, appeared for a hearing and presented the case's facts and arguments. Following the hearing, the authority directed the Applicant to reframe the question/s in their application. However, the Applicant did not revise the application but instead requested to withdraw it, citing that advance ruling cannot be sought for transitional matters. Consequently, the ruling passed by the authority was to dispose of the application as withdrawn.

In conclusion, the judgment by the Authority for Advance Ruling, Karnataka, addressed the issue of adjusting Service Tax paid on mobilization advances in the pre-GST regime. The ruling was based on the Applicant's decision to withdraw the application, stating that advance ruling cannot be sought for transitional matters. The case highlighted the importance of clarity in framing questions for advance rulings and the limitations on seeking rulings for transitional issues.