2023 (8) TMI 1296 - AAR - GST

Maintainability of Advance Ruling application - non-disclosure of enquiry/summons under Section 70 of CGST Act - HELD THAT - The applicant is interpreting the term 'proceedings' without considering the first proviso to section 98 (2) of the Act comprehensively - It is apparent that the first proviso covers any 'proceedings' in the case of an applicant under any of the provisions of the Act including Section 70 of the Act, under which investigation is being conducted by DGGI, Chennai Zonal Unit. It is taken into cognizance, the letter received from DGGI, Chennai Zonal Unit letter dt. 03.04.2023, about the investigation being conducted against the applicant from which, it is apparent that proceedings are pending against the applicant on the date of filing of advance ruling online application on 30.12.2022 and liable to be rejected under first proviso to Section 98(2) of the Act. The advance ruling application is rejected.

Summary

Issues Involved:
1. Whether GST is applicable on various fees collected by Tamil Nadu Medical Council.
2. Admissibility of the advance ruling application in light of ongoing investigations.

Summary:

Issue 1: GST Applicability on Fees Collected by Tamil Nadu Medical Council

The applicant, Tamil Nadu Medical Council, constituted under the Madras Medical Registration Act, 1914, collects fees for registration and allied activities. The Council argued that these fees are for statutory functions and not for services rendered, thus should not be subject to GST. They cited Black's Dictionary and previous rulings, asserting that the fees are akin to taxes and duties, not covered by GST Act. The State authority confirmed that the Council is not a service provider and GST is not applicable on the fees collected.

Issue 2: Admissibility of Advance Ruling Application

The applicant's request for an advance ruling was scrutinized due to an ongoing investigation by the Directorate General of GST Intelligence (DGGI) regarding non-payment of GST on the fees collected. Section 98(2) of the CGST Act prohibits admitting an application if the question raised is already pending or decided in any proceedings. The applicant argued that 'proceedings' do not include investigations or inquiries. However, the Authority concluded that the term 'proceedings' in the first proviso to Section 98(2) encompasses investigations under Section 70 of the Act. The High Court of Andhra Pradesh's ruling in Master Mind Vs Appellate Authority for Advance Ruling supported this interpretation. Consequently, the application was rejected as the issues were already under investigation.

Ruling:

The advance ruling application is rejected for the reasons discussed in para 7 supra.