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2020 (12) TMI 1304 - AUTHORITY FOR ADVANCE RULING, MADHYA PRADESHDetermination of liability to pay tax - double-taxation on freight portion of imported goods - Goods imported and IGST levied on CIF Value (which includes freight) Basic Custom Duty + Social Welfare Cess - levy of IGST again on the freight component (Ocean Freight) on reverse charge basis - HELD THAT:- While the question proposed before the Authority is whether the liability to pay tax exists or not. the applicant himself is not denying the existence of such a liability. The only assertion is whether the existence of such a liability creates irregularities in respect of tax laws outside the limited applicability of the IGST Act. In other words, the existence of such a liability is not being challenged by the applicant in the current application. rather the constitutional validity of the liability is being questioned - the applicant himself admits that the liability to pay tax exists. and is saying that the liability ‘should not exist since it is against the fundamental principles established by various Hon’ble Courts based on their interpretations of the various statutes and the Constitution of India. Therefore, the question proposed before the Advance Ruling Authority is not whether the liability exists or not, but whether such a liability is constitutionally valid or not. This Authority is of the view that based on the detailed reading and understanding of Section 97 of the CGST Act. an application for Advance Ruling can only be made to determine the “liability to pay tax” on any goods or services or both. Therefore, no application can be made to determine whether the liability is constitutionally valid or not. Such power rests only with the courts.
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