2024 (3) TMI 42 - AAR - GST

Seeking withdrawal of Advance Ruling Application - reversal of Input Tax Credit - HELD THAT - After due consideration, taken on record, the letter dated 09.11.2023 of the Applicant, wherein they have stated that they have decided to withdraw the application ARA No. 47/2022 dated 26.08.2022 which was filed by them, as they have reversed the input tax credit. As the Applicant has stated their desire to withdraw of their Advance Ruling Application, their request is considered and the application is allowed to be treated as withdrawn without going into the merits or detailed facts of the case. The application filed by the Applicant seeking Advance Ruling is disposed as withdrawn as per the request of the Applicant.

Summary

Issues involved:
The judgment involves issues related to the authority for advance ruling, the binding nature of advance rulings, the consequences of obtaining a ruling through fraud or misrepresentation, and the withdrawal of an advance ruling application.

Authority for Advance Ruling:
The judgment specifies that any appeal against the advance ruling order should be filed before the Tamil Nadu State Appellate Authority for Advance Rulings within 30 days. It emphasizes the binding nature of advance rulings on the applicant and the concerned officer unless there are changes in the law, facts, or circumstances. Additionally, it highlights the provision to declare a ruling void if obtained through fraud or misrepresentation.

Application for Advance Ruling:
The case involves M/s Subam Papers Private Limited, a GST registrant engaged in the manufacture of packaging paper, seeking clarification on availing input tax credit (ITC) on materials used for civil structures meant for machinery installation. The applicant submitted invoices for materials procured for modernizing plant and machinery but did not provide their interpretation of the law regarding the ITC eligibility.

Proceedings and Withdrawal:
The Applicant was given opportunities to be heard but did not appear for the hearings. Eventually, the Applicant decided to withdraw the advance ruling application as they had reversed the input tax credit based on their auditor's advice. The Authority accepted the withdrawal request without delving into the merits of the case.

Conclusion:
The judgment rules that the advance ruling application filed by the Applicant is disposed of as withdrawn at their request. Despite not examining the detailed facts of the case, the withdrawal is allowed based on the Applicant's decision to reverse the input tax credit.