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2022 (3) TMI 1297 - AUTHORITY FOR ADVANCE RULING, TAMILNADUMaintainability of Advance Ruling application - Recipient of supply - Valuation - taxable value of supply of construction services provided by the developer to the applicant - time of supply - applicability of N/N. 4/2018 - HELD THAT:- In the case on hand the applicant herself admits in the question raised by her that the services are provided by the developer to the applicant. The applicant is the recipient of the construction service of the flat for which an agreement was also entered on 10.4.2019 between the applicant and the developer for providing the services of the construction service. The cost of the construction service is determined by the developer and recovered from the applicant for handing over the flats to the applicant. In the subject case, we find that the applicant is a recipient of services and has raised the questions as a recipient of services. Whether or not the activities undertaken by the applicant pertain to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant and that the application is admissible under the ambit of this authority? - HELD THAT:- Section 95 of the CGST Act 2017 allows this authority to decide the matters in respect of supply of goods or services or both undertaken or proposed to be undertaken by the applicant. We find that the applicant has not undertaken the supply in the subject case. Rather the applicant is a recipient of impugned services in the subject case. The impugned transactions are not in relation to the supply of goods and services or both undertaken or proposed to be undertaken by the applicant This authority is governed by the statutory provisions of Chapter XVII of the GST Act. Section 98 of the Act, prescribes the procedure to be followed on receipt of the application and it clearly states that prima-fade, on receipt of the application, the authority should examine its admissibility after extending an opportunity of hearing to the applicant - if a recipient obtains a ruling on the value to be adopted of his inward supply of goods or services, the supplier of such goods or services is not bound by that ruling and he is free to assess the supply according to his own determination, in which case, the ruling loses its relevance and applicability even. Any law provision has to be interpreted in a constructive and harmonious way keeping in mind the object of the purpose of the provision. All parts of it should be read in aid of and not in derogation of that purpose. Any interpretation, if it defeats the very purpose of the objective and purpose of the law provision, is not only incorrect but also improper and bad in law. Thus, only a supplier and not the recipient is eligible to seek an advance ruling and therefore the subject application cannot be admitted as per the provisions of Section 95 of the CGST Act - application rejected as not admissible.
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