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TMI Blog2023 (2) TMI 875X X X X Extracts X X X X X X X X Extracts X X X X ..... ggregate turnover and further to claim exemption in respect of services specified in column (3) under serial number 41 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 [corresponding West Bengal State Notification No. 1136 F.T. dated 28.06.2017], as amended. Here, the intention of the legislature is to provide exemption to the taxable person who is supplying the services since other than the supply on which the recipient is liable to pay tax under reverse charge, tax is payable by the taxable person who is making the supply. If an application is filed by the recipient of goods or services or both on the taxability of his inward supply of goods or services and ruling is pronounced accordingly, such ruling shall be binding only on him and on the concerned officer or the jurisdictional officer of him. In no way, the ruling shall be binding on the supplier of such goods or services. The application is rejected. - WBAAR 30 of 2022 Order No. 26/WBAAR/2022-23 - - - Dated:- 9-2-2023 - MR BRAJESH KUMAR SINGH, AND MR JOYJIT BANIK, MEMBER Applicant s Representative Heard : Mr. Ankit Kanodia, Authorized Advocate Preamble A person within the ambit of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xempt from GST. 1.5 In the backdrop of aforesaid activities, the applicant has made this application under sub section (1) of section 97 of the GST Act and the rules made there under raising following question vide serial number 14 of the application in FORM GST ARA-01: Whether the upfront premium payable by the applicant towards the services of leasing of the land for industrial purposes by SMPK is exempted under entry 41 of Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017? 1.6 During the course of hearing, the AAR observed that the instant application cannot be accepted since an application for advance ruling can be filed by the supplier in relation to supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. But, in respect of supply involved in the aforesaid question, the applicant is the recipient of services. 1.7 The authorised advocate of the applicant, on being informed of the issue, has furnished a written submission which is reproduced herein under in verbatim: 1.7.1 During the course of hearing for admission of the above mentioned Advance Ruling application as filed by M/s. Anmol Industries Limit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as defined in section 95(c) of the Act supra, provides that any person registered or desirous of obtaining registration under the CGST/WBGST Act, 2017. 1.7.4 On the combined reading of the above two sections what transpires is that an applicant can apply for advance ruling on the questions as stated above which includes the applicability of a notification issued under the provisions of the Act. In the given case of the applicant, the applicant has raised a question as to applicability of the exemption notification No. 12/2017-CGST (R) dated 28.06.2017, more particularly entry number 41 of the said notification in the facts and circumstances as provided in details in the said application filed by the applicant. 1.7.5 The applicant states that the provisions nowhere state that the applicant has to be service provider in order to seek an advance ruling on the questions as stated above. The only condition to be fulfilled is that the applicant should be registered under the Act or desirous to undertake a registration. There is no provision provided in the statute that the applicant must be a output supply of goods/services provider. Had that been the intent of the legislature, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is amply clear from the unambiguous words of the statue that any person who qualifies to be an applicant can seek an advance ruling on questions as per section 97(2) whether it be acting as a recipient of supply or supplier of the alleged supply of goods or services. 1.7.10 In the case of the applicant, the applicant is seeking an advance ruling on the applicability of the exemption notification basis of the facts given in the application filed and the applicant being a recipient of the service is entitled to have an advance ruling on the said issue raised by the applicant. 1.8 The submission of the applicant has duly been considered. The contention of the applicant can be summarized as under: Application for advance ruling can be filed by any person registered or desirous of obtaining registration under the GST Act and the law nowhere states that the applicant has to be a supplier in order to seek an advance ruling on the question as stated above. The expression in relation to the supply of goods or services or both in Section 95(a) of GST Act can be interpreted to include both inward supply and outward supply. In the definition of advance ruling, the expr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is required to account for his outward exempt supply in order to determine his aggregate turnover and further to claim exemption in respect of services specified in column (3) under serial number 41 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 [corresponding West Bengal State Notification No. 1136 F.T. dated 28.06.2017], as amended. Here, the intention of the legislature is to provide exemption to the taxable person who is supplying the services since other than the supply on which the recipient is liable to pay tax under reverse charge, tax is payable by the taxable person who is making the supply. 1.11 The applicant has submitted that the recipient only is paying the tax and the supplier merely collecting the tax from recipient and paying to the Government. Section 49 of the GST Act deals with payment of tax, interest, penalty and other amounts. Further, sub-section (8) of section 49 provides the sequences to be followed by a taxable person to discharge his tax and other dues under the GST Act. Furthermore, sub-section (9) of section 49 speaks that Every person who has paid the tax on goods or services or both under this Act shall, unless the contrary i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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