2020 (1) TMI 1383 - AAR - GST

Maintainability of Advance Ruling application - applicant never appeared before the authority when he was called for - HELD THAT - The applicant was called upon to appear before this Authority on 09.01.2020 vide memo no. 02 dated 06.01.2020 but none appeared on behalf of the applicant. Thereafter notice of appearance was sent for 28.01.2020 vide memo no. 13 dated 17.01.2020. The applicant failed to appear on the said date also. Since the Authority for Advance Ruling is bound to pronounce ruling within 90 days of the receipt of application as per Section 98(6) of the CGST/HGST Act the applicant cannot be granted any further opportunity of hearing. Hence the instant application for Advance Ruling is rejected under Section 98 (2) of the CGST/HGST Act. Application dismissed.

Summary

Issues: Liability to pay GST/IGST tax on training to students sponsored by the Directorate of Welfare of Scheduled Caste and Backward Classes Department, Haryana; Exemption under Entry No. 72 of the Haryana Government Excise & Taxation Department Notification No. 47/ST-2 Dated 30.06.2017; Requirement of registration under HGST/CGST for the Applicant.

Liability to pay GST/IGST tax on training to students sponsored by the Directorate of Welfare of Scheduled Caste and Backward Classes Department, Haryana:
The applicant, a Limited Company engaged in providing education, sought clarification on the liability to pay GST/IGST tax on training provided to students sponsored by the Directorate of Welfare of Scheduled Caste and Backward Classes Department, Haryana. The applicant highlighted that the training fee was received from the Directorate and reflected in the fee structure. However, the Authority for Advance Ruling noted that despite multiple notices for appearance, the applicant failed to attend the proceedings. As per Section 98(6) of the CGST/HGST Act, the Authority is required to deliver a ruling within 90 days of receiving the application. Due to the applicant's non-appearance, the application was rejected under Section 98(2) of the CGST/HGST Act, without further opportunity for a hearing.

Exemption under Entry No. 72 of the Haryana Government Excise & Taxation Department Notification No. 47/ST-2 Dated 30.06.2017:
The applicant also inquired about whether Entry No. 72 of the Haryana Government Excise & Taxation Department Notification No. 47/ST-2 Dated 30.06.2017 granted an exemption of GST on the training of students by the petitioner. However, the Authority's decision to reject the application due to the applicant's non-appearance prevented a detailed analysis or ruling on this specific exemption provision. The rejection was based on procedural grounds, emphasizing the time-bound nature of the ruling process under the CGST/HGST Act.

Requirement of registration under HGST/CGST for the Applicant:
Another query raised by the applicant was regarding the necessity of registering under the State of Haryana under HGST/CGST based on the circumstances of the case. However, the rejection of the application by the Authority for Advance Ruling precluded any determination or guidance on the registration requirement. The rejection was solely based on the applicant's failure to participate in the proceedings despite multiple notices for appearance, in accordance with the statutory timeline for delivering rulings under the CGST/HGST Act.

In conclusion, the Authority for Advance Ruling, Haryana, rejected the application for advance ruling concerning the liability to pay GST/IGST tax on training provided to students sponsored by the Directorate of Welfare of Scheduled Caste and Backward Classes Department, Haryana, as well as the related queries on exemption under a specific notification and registration requirements under HGST/CGST. The rejection was primarily due to the applicant's non-appearance, which hindered the Authority's ability to provide a substantive ruling on the legal and tax implications raised in the application.