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2022 (3) TMI 678 - AUTHORITY FOR ADVANCE RULING, TELANGANAMaintainability of Advance Ruling application - Territorial Jurisdiction - Input tax credit - applicant M/s. Granules USA Inc. is a manufacturer of bulk drugs and wholly owned subsidiary of Granules India Limited - M/s. Granules USA Inc. supplied pharmaceutical tablets to M/s. Lambda Therapeutic Research Ltd. from USA on behalf of Granules India Limited. - recipient of the goods M/s. Lambda Therapeutic Research Ltd is eligible to take credit of the IGST or not? - HELD THAT:- It is to inform that Section 96 of the CGST & SGST Acts clearly state territorial nexus of an Advance Ruling authority so that an authority for Advance Ruling shall function as such an Authority for Advance ruling for that State or Union Territory in which it is constituted under the CGST & SGST Acts. Evidently the applicant seeks clarification regarding the question impacting taxable person who is not a registered taxable person in the State of Telangana. Therefore an ‘Advance Ruling’ cannot be made for a person not registered in the State of Telangana in light of this provision. Further Clause (a) of Section 95 of CGST Act, 2017 clearly states that ‘Advance Ruling’ means a decision provided by the authority to the applicant on questions “in relation to the supply of goods or services or both being undertaken by such applicant”. Here a clarification is sought on a question unrelated to supply of goods or services made by the applicant. Therefore even on this count an ‘Advance Ruling’ can’t be made in the present case. The application is rejected.
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