2021 (3) TMI 573 - AAR - GST

Maintainability of Advance Ruling application - requirement of deposit fees along with the application - Classification of goods - Zipper Roll - Zipper Roll with slider - Zip Fasteners, Zipper etc. - whether it is Slide fastener or parts of Slide fastener? - HELD THAT - On a combined reading of the provisions of the aforementioned Section 97 and Rule 104 of both the aforementioned Acts and Rules, we find that 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 Ten thousand rupees (Five thousand rupees as per Rule 104 of the CGST Rules, 2017 Five thousand rupees as per Rule 104 of the GGST Rules, 2017). Although the applicant has filed the application in the prescribed format of GST-ARA-01, they have not 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 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. Instant application filed by M/s. Ashokkumar Khimjibhai Patel, Shop No.7 Ajanta Diamond Society, Ground Floor, A.K.road, Varachcha road, Surat is hereby rejected under Section 98(2) of the CGST/GGST Act, 2017 being non-maintainable.

Summary

Issues:
Classification of goods and applicable tax rate under HSN Code 9607 - Slide fastener or parts of Slide fastener. Applicability of a notification issued under the provision of the Act.

Analysis:
The applicant, engaged in trading of Zipper Roll, Zip Fasteners, etc., sought an advance ruling on the classification of their goods and the applicable tax rate. They believed their products could fall under HSN Code 9607 - Slide fastener @ 12% GST. The applicant submitted photos of their products for clarification.

The Authority considered the applicant's submissions and the arguments made by their representative. It was noted that the application fee paid was only ?5,000, whereas the prescribed fee was ?10,000 as per Section 97 of the CGST Act and Rule 104 of the CGST Rules. The application must be submitted in FORM GST ARA-01 with the correct fee as specified under the Acts and Rules.

The Authority highlighted that non-compliance with the fee requirement renders the application invalid. As the applicant failed to pay the total fees of ?10,000 (?5,000 under each head - CGST & GGST), the application was liable for rejection under Section 98(2) of the CGST Act for not meeting the statutory fee obligations.

Due to the applicant's failure to adhere to the prescribed fee structure, the Authority rejected the application by M/s. Ashokkumar Khimjibhai Patel under Section 98(2) of the CGST/GGST Act, 2017. The rejection was based on the non-maintainability of the application, as it did not fulfill the fee requirements outlined in the relevant sections and rules of the Acts and Rules governing advance rulings.