2019 (2) TMI 1007 - AAR - GST

Admissibility of Advance Ruling application - Section 97(2)(a) of the CGST/WBGST Acts, 2017 - Applicant submits that the question raised in the Application has neither been decided by nor is pending before any authority under any provisions of the GST Act - Held that - 1st proviso to Section 98(2) prohibits this Authority from admitting any application where the question raised is already pending or decided in any proceedings in the case of the applicant under any provisions of the GST Act. It does not distinguish between stages or nature of the proceedings. Any action lawfully taken under any provisions of the GST Act is, therefore, to be construed as proceedings under the Act. It appears from records that the Application was filed online on 22-11-2018, whereas, as the above central authority submits, the proceedings under Section 71 had been initiated on 31-7-2018. The Applicant did not dispute that officials from the concerned authority had visited his places in connection with the investigation, and its subject matter was the same question on which he was seeking a ruling from this Authority. It is amply clear from the above discussion that proceedings under the GST Act were pending against the Applicant on the date of hearing under Section 98(2), concerning the same question on which he was seeking advance ruling - application cannot be admitted.

Summary

Issues: Classification of goods for advance ruling under the GST Act; Admissibility of the application in light of pending proceedings under Section 71 of the GST Act.

Classification of goods for advance ruling:
The case involves an application seeking a ruling on the classification of rice polisher made of flexible and elastic rubber under the GST Act. The applicant, stated to be a manufacturer of such goods, submitted that the question raised in the application had not been decided or was pending before any authority under the GST Act. The concerned officer did not object to the admission of the application.

Admissibility of the application in light of pending proceedings under Section 71 of the GST Act:
The Authority received communication that proceedings under Section 71 of the GST Act had been initiated against the applicant. During the hearing under Section 98(2) of the GST Act, the applicant insisted on the admission of the application, stating that no show cause notice had been issued or received regarding the investigation proceedings. However, the 1st proviso to Section 98(2) prohibits the admission of any application where the question raised is pending or decided in any proceedings under the GST Act for the applicant. The Authority found that proceedings were indeed pending against the applicant concerning the same question for which an advance ruling was sought. Therefore, the application was not admitted.

Conclusion:
The Authority concluded that since proceedings under the GST Act were pending against the applicant regarding the same question for which an advance ruling was sought, the application could not be admitted. The order was to be communicated to both the applicant and the concerned officer for further action.