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2019 (2) TMI 914 - AAR - GSTRequest for withdrawal of Advance Ruling application - CENVAT Credit availed through TRAN-1 - reverse charge mechanism - validity of restriction imposed on admissibility of ITC by a Circular, which is contrary to the legal provisions - Held that - The request of the applicant to withdraw the application voluntarily and unconditionally is hereby allowed.
Issues:
1. Admissibility of CENVAT Credit for GST refund under inverted tax structure mechanism. 2. Validity of issuing a circular contrary to legal provisions. Analysis: Issue 1: Admissibility of CENVAT Credit for GST refund under inverted tax structure mechanism The application sought an advance ruling on whether the CENVAT Credit availed through TRAN-1, characterized as Central Tax in the Electronic Credit Ledger, is admissible when calculating Input Tax Credit (ITC) for GST refund under the inverted tax structure mechanism. During the preliminary hearing, it was clarified that the question related to refund claims falls outside the purview of section 97 of the GST Act, 2017. The applicant was directed to reframe the question within 8 days, failing which the application would be rejected. Subsequently, the applicant requested to withdraw the application voluntarily and unconditionally. The authority allowed the withdrawal, and the application was disposed of accordingly. Issue 2: Validity of issuing a circular contrary to legal provisions The second question raised in the application pertained to whether a circular, conflicting with legal provisions, could be issued to restrict the admissibility of Input Tax Credit (ITC). However, due to the voluntary withdrawal of the application by the applicant, this issue was not addressed in the final ruling. The authority's decision to permit the withdrawal rendered the question regarding the validity of such a circular unanswered in this specific case. In conclusion, the Authority for Advance Ruling, Maharashtra, allowed the voluntary withdrawal of the application filed by ENVITECH CHEMICAL SPECIALITIES PRIVATE LIMITED, thereby disposing of the matter without providing a ruling on the admissibility of CENVAT Credit for GST refund under the inverted tax structure mechanism or the validity of issuing a circular contrary to legal provisions.
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