TMI Blog2020 (12) TMI 273X X X X Extracts X X X X X X X X Extracts X X X X ..... y any stretch of mind. Thus, in view of the provisions laid down in section 97(2) of the CGST Act, 2017 encompassing the specific questions, which are sought under advance ruling, it can decisively be inferred that the questions raised by the respondent before Advance Ruling Authority were beyond the scope and jurisdiction of Advance Ruling, and hence do not warrant any ruling thereon and therefore in view of the provisions of Section 97 of the CGST Act, 2017, this authority is not allowed to answer the subject question. The subject application filed for advance ruling is rejected, as being non-maintainable as per the provisions of the CGST Act, 2017 and Rules made there thereunder. - GST-ARA-HP/2020-21/20870-76 - - - Dated:- 28-8-2020 - SH. RAKESH SHARMA, AND SH. ABHAY GUPTA, IRS, MEMBER PROCEEDINGS (Under Section 98 of the Central Goods and Service Tax Act, 2017 and the Himachal Pradesh Goods and Service Tax Act, 2017) The present application has been filed under Section 97 of the Central Goods and Services Tax Act, 2017 and the Himachal Pradesh Goods and Services Tax Act, 2017 [hereinafter referred to as the CGST Act and HPGST Act respectively] by M/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... practices from the scrap dealers, which is an unorganized sector, the applicant has adopted a policy where the payment in relation to tax component charged by the scrap dealer on Tax Invoice (i.e supplier of raw material) is made upon matching the details of inward supplies made by the applicant from the respective supplier with the details as appearing GSTR 2A of the applicant, which is a self-generated return on the basis of the data reported by the respective supplier in their return of outward supply i.e. GSTR 1 for the respective month. 2.5 That the applicant makes the payment in relation to tax component only after ensuring that the supplier of raw material (i.e. Scrap dealer) has filed his return of outward supply i.e. GSTR 1 and the relevant Tax Invoices against the outward supply from the supplier, is reported by the supplier is his GSTR 1 by matching the Tax Invoices with GSTR 2A appearing on the applicant s portal against the inward supplies made by the applicant. 2.6 That the applicant makes all the remittances against consideration for raw material procured or freight charges for transportation by road through banking channel which can be linked through bank sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the principal place of business 3. Payment of Tax charged in respect of supply, to the Government by the Supplier Applicant ensures all the available methods provided by the department to ensure that the supplier reports the supplies in his valid returns and then makes the payment pertaining to tax 4. Furnishing of return under Section 39 Applicant has furnished all the valid returns under Section 39 5. Payment of amount towards the value of supply along with tax payable, to the supplier within 180 days from the date of issue invoice Applicant makes payment in relation to value of goods on receipt of goods and payment in relation to tax on matching the details of inward supply procured by the applicant with the details as appearing in the applicant's GSTR 2A (which is self-generated return on the basis of data reported in the return of outward supply i.e GSTR 1 by the supplier). Nowhere the outstanding payment exceeds the timeline of 180 days on the part of the applicant. 6. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... redit is admissible to the applicant where the tax collected by the Supplier from the applicant is not paid to the Government in cash but the same is reflecting in GSTR 2A of the applicant 2. Whether the Input Tax credit is admissible to the applicant where the tax collected by the Supplier from the applicant is paid to the Government through utilization of ineligible input tax credit but the same is reflecting in GSTR 2A of the applicant 3. CONTENTION-AS PER THE REVENUE DEPARTMENT From the provisions of Section 97(2) of the CGST Act 2017, it is apparent that question on determination of the place of supply has not been covered in the above set of questions on which advance ruling can be given. Hence, the application of the applicant does not merit consideration and should be rejected. 4. RECORD OF PERSONAL HEARING 4.1 Preliminary First Hearing in the matter was held on 10.06.2020. Sh. Archit Singla, CA of M/s Naresh K Singla associates on behalf of M/s Aditya Industries, Kala Amb, District Sirmour (H.P.) appeared on-line on web-meeting/ video conference for Personal Hearing held on 10.06.2020 on behalf of the applicant. He re-iterated his submissions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion raised on non-payment of tax. He categorically pointed out that under Sub-Section 2(d) of Section 97 of CGST Act, 2017 it is very clear that only those cases come under the purview of Advance Ruling where tax has been paid or deemed to have been paid. In the present application, ruling has been sought on the issue where the tax has not been paid. As the statute is very clear, the ruling cannot be issued by this authority as the issue does not come under its purview, Hon ble member Sh. Abhay Gupta Joint Commissioner, CGST Shimla concurred with the opinion of the Hon ble member and opined that this should be considered as final hearing as the matter is quite clear and does not come under the purview of the advance ruling authority. 4.2.2 Sh. Archit Singla, CA of M/s Naresh K Singla associates argued that the matter comes under the purview as tax deemed to have been paid and expressed his wish to submit some more written reply in this matter for due consideration of the Authority. He requested that no further personal hearing may be given but his submissions regarding this issue be considered before any ruling is passed by the authority for which both members agreed and aske ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iling GSTR 2 i.e. statement of inward supplies, has been extended initially by way of Notification No 30/2017 - Central Tax dated 11.09.2017 and then further extended vide Notification No 58/2017-Central Tax dated 15.11.2017 till the period not notified till date. 4.2.4.7 That in the absence of GSTR 2 i.e. statement of inward supplies, the applicant has the option to manually reconcile the. Input Tax credit on inward supplies as reported by the supplier in his GSTR 1 which shall be appearing in the GSTR 2A of the applicant; 4.2.4.8 That there is no further mechanism with the applicant except GSTR 2A, to ensure the details reported by his supplier and relying on same the applicants avails the Input tax credit assuming that tax the has been deemed to be paid by the supplier as the same is reported by him in his GSTR 1; 4.2.4.9 That the purpose of introducing the deeming fiction in the ibid provision is to reconcile such uncertain situations with the provisions of the law. The word is and its purpose is explained in the matter Consolidated Coffee Ltd. Another v. Coffee Board, Bangalore, (1980) 3 SCC 358 = 1980 (4) TMI 278 - SUPREME COURT , it was held: (Page 371, Para ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nation 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 amounts to or results in a supply of goods or services or both, within the meaning of that term. 5.5 From the reading of section 97(2)(d) of CGST Act, 2017, it is very much clear that the advance rulings can be sought regarding admissibility of input tax credit in cases where tax has been paid or deemed to have been paid which clearly implies that in cases where tax has not been paid or not deemed to have been paid advance ruling can not be sought under the provisions of CGST Act, 2017. 5.6 Now we see the questions that have been sought by the applicant for issuance of advance ruling. Questions raised in the original application. Q1: Whether the input tax credit availed by the applicant is subject to rejection solely on the ground that the tax collected by the suppli ..... X X X X Extracts X X X X X X X X Extracts X X X X
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