2021 (3) TMI 567 - AAR - GST

Maintainability of Advance Ruling - application not submitted in proper format - Classification of goods - Water pump - to be classified under HSN 8413 or HSN 8421? - HELD THAT - On going through the provisions of Section 97 of the CGST Act, 2017 and Rule 104 of the CGST Rules, 2017, it is found that the application for obtaining an Advance Ruling under sub-section(1) of Section 97 is to be submitted in FORM-GST ARA-01 (which is the prescribed format for the said application) and shall be accompanied by a fee of Five thousand rupees which is to be deposited in the manner specified in Section 49 of the CGST Act, 2017. Similarly, as per Section 97 of the GGST Act, 2017 and Rule 104 of the GGST Rules, 2017, the application for obtaining an Advance Ruling under sub-section(1) of Section 97 is to be submitted in FORM-GST ARA-01 and shall be accompanied by a fee of Five thousand rupees which is to be deposited in the manner specified in Section 49 of the GGST Act, 2017. The applicant has neither filed the application in the prescribed format of GST-ARA-01 nor paid the required fees of ₹ 10,000/- as required as per the provisions of aforementioned Sections and Rules. Therefore, the instant application is liable for rejection under Section 98(2) of the CGST Act, 2017 for not filing the application in proper FORM GST-ARA-01 and not paying the total fees of ₹ 10,000/- i.e ₹ 5,000/- under each head CGST GGST as required under the provisions of CGST Act and Rules and respective GGST Act Rules. Application is rejected under Section 98(2) of the CGST/GGST Act, 2017 being non-maintainable.

Summary

Issues:
Classification of water pump under HSN 8413 or HSN 8421 for GST purposes.

Analysis:
The applicant, engaged in manufacturing and trading water pumps, sought an Advance Ruling on the classification of their product under GST. The applicant argued that their water pumps, specifically RO booster pumps, are essential for increasing water pressure in reverse osmosis systems, ensuring efficiency and high-quality water production. They highlighted the importance of proper water pressure for RO systems to function effectively and the necessity of booster pumps in cases of low pressure. The applicant emphasized the benefits of using RO booster pumps, such as improved system efficiency, water quality, and reduced wastage. They also mentioned their previous tax compliance under the Gujarat VAT Act and sought clarity on the classification under GST.

The Authority for Advance Ruling, Gujarat, observed that the applicant failed to submit the application in the prescribed format as required by Section 97(1) of the CGST Act, 2017, and Rule 104 of the CGST Rules, 2017. Additionally, the applicant only paid a fee of ?5,000 instead of the required ?10,000. The Authority noted the specific requirements for submitting an Advance Ruling application, including the use of FORM GST ARA-01 and the correct fee payment process. Due to the non-compliance with these statutory provisions, the application was deemed invalid and liable for rejection under Section 98(2) of the CGST Act, 2017.

Consequently, the Authority ruled that the application from the applicant was rejected under Section 98(2) of the CGST/GGST Act, 2017 due to being non-maintainable. The rejection was based on the applicant's failure to adhere to the prescribed application format and fee payment requirements, rendering the application invalid for an Advance Ruling. The ruling emphasized the importance of compliance with statutory provisions for submitting applications to the Advance Ruling Authority, highlighting the need for proper adherence to procedural guidelines outlined in the relevant Acts and Rules governing GST.