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TMI Blog2022 (7) TMI 699X X X X Extracts X X X X X X X X Extracts X X X X ..... use in the Circular No. 92/11/2019-GST dated 07.03.2019 talks about only certain sections of trade and industry such as pharmaceutical companies etc and not about evasion prone commodity like cigarette and pan masala - The respondent did not inform the Authority that there are several alerts issued against the said firm by department and that they are indulged in claiming refund of accumulated ITC obtained through fraudulent means and many search operations have been conducted against the party. Ad-valorem / specific taxation - mandate of the Advance Ruling Authority - Compensation Cess - HELD THAT:- The advance ruling can be sought on the questions specified in the sub-section (2) of the Section 97 of the Act and there is no bar on the any specific commodity / entity, in the Act. Further, it is also observed that the Authority for Advance Ruling can give its ruling, on the question specified under sub-section (2) of the Section 97 of the Act, with reference to the tax levied under the Act. If any particular commodity attracts tax/cess, levied under any other statutory Act/Rules then the advance ruling will be restricted to the tax portion levied under the CGST Act, 2017 only. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation Cess. In order to grow the business the respondent has launched a new sale scheme wherein they will be supplying extra packs of cigarettes along with regular supply quantity without receiving any extra consideration for that additional supply. 3). Accordingly, in order to ascertain the tax liability on the additional quantity of cigarettes, the respondent had filed an advance ruling, before the Advance Ruling Authority, Uttar Pradesh, on following issues:- a. Whether the extra packs of cigarettes would again be leviable to GST. b. If yes, the taxable value which can be attributed to such extra packs of cigarettes for levy of GST. c. Whether extra packs of cigarettes would be considered as exempt supply or free samples and hence attracts provisions of Section 17(2) of the UPGST, Act 2017 read with Rule 42 of the UPGST Rules 2017, or clause (h) of Section 17(5) of the UPGST Act, 2017. 4). The Authority for Advance Ruling, vide Order No. 84/2021 dated 18.10.2021 ruled that: Q-1 - Whether the extra packs of cigarettes would again be leviable to GST ? Ans- Answered in negative, in view of the discussions made above. Q-2 - If yes, the tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6.5) The party did not inform the Authority that there are several alerts issued against the said firm by department. Investigation also revealed that the party is also one of the beneficiaries of fake ITC generated. A case against the party is pending at Hon'ble High Court of Delhi for fake input credit and misuse of ITC. 6.6) The party did not inform the authority that they are indulged in claiming refund of accumulated ITC obtained through fraudulent means and many search operations have been conducted against the party. 7) The Appellant was granted personal hearing on 19th May 2022. Further, Following the principle of natural Justice, the respondent was also requested to present its case with reference to appeal filed by the Appellant. Ms. Resham Dwivedi, Deputy Commissioner, Division-II, Agra Commissionerate appeared in personal hearing on behalf of the Appellant and Sh. Manish Priyadarshi, Advocate/Authorized Representative, appeared in virtual mode, on behalf of the respondent. During the course of personal hearing, the Appellant reiterated the submissions already made vide appeal application, whereas Sh. Manish Priyadarshi sought time till 23.05.2022 to file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he supply of goods or services or both being undertaken or proposed to be undertaken by the applicant . Further, as per sub-section (2) of the Section 97 of the Act:- (2) The question on which the advance ruling is sought under this Act, shall be in respect of,- (a) classification of any goods or services or both, (b) applicability of a notification issued under the provisions of this Act, (c) determination of time and value of supply of goods or services or both, (d) admissibility of input tax credit of tax paid or deemed to have been paid, (e) determination of the liability to pay tax on any goods or services or both, (f) whether applicant is required to be registered, (g) whether any particular thing done by the applicant with respect to any goods or services or both amount to result in a supply of goods or services or both, within the meaning of that term. In light of above, we are of the opinion that advance ruling can be sought on the questions specified in the sub-section (2) of the Section 97 of the Act and there is no bar on the any specific commodity / entity, in the Act. Further, we also observe that the Authority for Adva ..... X X X X Extracts X X X X X X X X Extracts X X X X
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