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TMI Blog2022 (4) TMI 1336X X X X Extracts X X X X X X X X Extracts X X X X ..... n etal would also have to be admissible as maintainability of AAR Application. There are no reason to substitute the phrase CGST Rules for the word Notification referred to in section 97(2)(b). There are no merit in this submission and it is held that AAR has its carved out functional jurisdiction to pass Rulings as per Section 97(2). The subject Application non maintainable and hereby rejected. - GUJ/GAAR/R/2022/21 - - - Dated:- 12-4-2022 - ATUL MEHTA AND (ARUN RICHARD), MEMBER Present for the applicant : Shri Rajesh Ghai, Taxation Head of JK Paper Ltd. and Shri Rashmin Vaja, CA Brief Facts: M/s. JK Paper Limited (hereinafter referred to as JKPL ) have two integrated Pulp, Paper and packaging board Plants. (I) JK Paper Ltd. Unit: JK Paper Mills, having GSTIN No. 21AAACT6305N1ZG which is situated at Jaykaypur Dist. Rayagada, Odisha and the other is (II) JK Paper Ltd. Unit: CPM (hereinafter referred as JKPL CPM ), having GSTIN No. 24AAACT6305N1ZA which is situated at Fort Songadh Dist Tapi Gujarat. 2. The application reads that JKPL CPM has undertaken major Expansion and modernization of its plant, for which it is eligible to avail the benefi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enges involved in having two (2) different registration numbers of the same entity at the same location for the same business and to reduce the burden of an additional compliances, the JK-New Unit desires to surrender the GST registration (New GST No. 24AAACT6305N2Z9) taken for the Expansion Project and merge the same with GST registration of existing unit (Old GST No. 24AAACT6305N1ZA) of JKPL CPM by transferring all business assets and liabilities of the New Unit to the existing unit. Upon merger of both GSTINs, closing balance of ITC available in electronic credit ledger of JK-New Unit (GST No 24AAACT6305N2Z9) is proposed to be transferred to electronic credit ledger of existing GSTIN (24AAACT6305N1ZA), which as on 05.02.2022 is ₹ 185,40,68,928/-. 8. JK-New Unit submits that as per Section 18(3) of CGST Act, 2017 read with Rule 41 of CGST Rules, 2017, it intends to transfer closing balance of ITC lying in electronic credit ledger to existing unit (24AAACT6305N1ZA) by filing Form ITC-02 wherein both are registered in same State while transferring of all business assets and liabilities of the New Unit. 9. JK-New Unit has submitted that in case of sale, merger, de-merger ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erging of GSTIN s by transferring all business assets and liabilities from new GSTIN to existing GSTIN shall very well get covered u/r 41 of CGST Rules, 2017 read with Section 18(3) of CGST Act, 2017. JK-New Unit submits that ITC transfer facility available under GST law vide filing of Form ITC-02 shall be made available to them. 12. JK- New Unit has relied upon the order passed by Andhra Pradesh Authority of Advance Ruling on 24.02.2020 in case of M/s. Shilpa Medicare Limited wherein authority has allowed to transfer unutilized ITC from Vizianagaram, Andhra Pradesh unit to Bengaluru, Karnataka Unit by filing of Form ITC-02 in case of transfer of business as a going concern where both the units of Applicant are in different States. 13. Question on which Advance Ruling sought: 1. Due to change in the Government policy, Applicant desires to surrender the GSTIN (24AAACT6305N2Z9) and merge it with existing GSTIN (24AAACT6305N1ZA) of JKPL CPM by transferring all business assets and liabilities to the said existing GST registration. In view of merger of two GSTIN of JKPL CPM, whether the applicant can transfer closing balance of ITC from its GSTIN (24AAACT6305N2Z9) to existing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mon portal, accept the details so furnished by the transferor and, upon such acceptance, the un-utilized credit specified in FORM GST ITC 02 shall be credited to his electronic credit ledger. (4) The inputs and capital goods so transferred shall be duly accounted for by the transferee in his books of account. In the instant case on which the application sought for advance ruling, it appears that the transfer of ITC can be allowed subject to fulfilling the conditions as prescribed under Section 18(3) of CGST Act, 2017 read with Rule 41 of the CGST Rules,2017 . Findings 16. We have carefully considered the submissions before us. The Questions before us are raised vide clauses (b) (e) of Section 97(2), CGST Act. I. Maintainability of Section 97(2)(b) CGST Act: During hearing, Shri Rashmin Vaja submitted that since CGST Rules are notified through Notifications therefore the present application is maintainable in terms of Section 97(2)(b) CGST. We refer to Section 95(a)CGST Act; reads that an Advance Ruling means a decision provided by the Authority to an applicant on matters/ questions specified in Section 97(2), in relation to the supply of goods/ ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 95(a), on matters as stipulated in section 97(2)(b). We find it overreach and encroachment to Rule on matters beyond our statutory and functional jurisdiction as defined in Section 97(2) CGST Act. For to pass Rulings on those matters pertaining to GST scheme of law, beyond the jurisdiction carved in Section 97(2) CGST Act is not proper and legal. For if the submission of Shri Vaja is to be favoured upon by us, issues such as validity of a Notification/ constitutionality or legality of a Notification etal would also have to be admissible as maintainability of AAR Application before us. We find no reason to substitute the phrase CGST Rules for the word Notification referred to in section 97(2)(b). We find no merit in this submission and hold that AAR has its carved out functional jurisdiction to pass Rulings as per Section 97(2). To accept Shri Vaja s submission is to open almost everything under the Sun pertaining to GST; even to decide on legality or correctness of a Notification. We hold that this is not the intention of the competent Legislature while enacting the GST Act. Legislature enacted section 97(2) CGST Act carving the Authority s functional jurisdiction. 20. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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