2025 (6) TMI 1338 - HC - GST

Computation of value of GST - amount paid to the owner of the car and amount incurred for the refurbishment of the said car are includible in the purchase price so as to deduct the same from the selling price of the old and used refurbished car to arrive as the margin for the purpose of valuation and levy under N/N. 08/2018CT (Rate) dated 25.01.2018 or not - case of petitioner is that the appellate authority had no occasion to deal with issue of ITC in appeal filed against decision of AAR with regard to valuation to be done for arriving at the margin as per the notification - HELD THAT - The challenge to the order of the AAR is not being pressed. The respondent albeit defends the order of the AAAR but is not a position to dispute that the issue with regard to ITC was not before the AAR. The order of the AAAR is upheld but the observation made are expunged - the writ petition is partly allowed.

Summary

The Rajasthan High Court, in a petition challenging orders dated 27.08.2021 and 14.12.2021 by the Authority for Advance Ruling (AAR) and Appellate Authority for Advance Ruling (AAAR), addressed whether amounts paid to a car owner and refurbishment costs are includible in the purchase price for valuation under Notification No. 08/2018-CT (Rate). The AAR ruled negatively on this question. The AAAR upheld the ruling but went beyond the grounds of appeal by addressing the issue of Input Tax Credit (ITC) entitlement under the same notification, specifically in para 6.8, stating that "the availment of this notification... is optional" and conditions must be followed if benefits are claimed.The Court held that the AAAR exceeded its jurisdiction by considering ITC, which was not before the AAR or part of the appeal grounds. While upholding the AAAR's order, the Court expunged the observations in para 6.8 relating to ITC. The writ petition was thus partly allowed, emphasizing that appellate authorities must confine their decisions to the grounds of appeal and issues raised before them.