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Advance Ruling to be void in certain circumstances [Section 104] - GST Ready Reckoner - GSTExtract Advance Ruling to be void in certain circumstances Advance ruling obtained by way of fraud/misrepresentation shall be void [ Section 104 ] Where the Authority or the Appellate Authority or the National Appellate Authority subsequently discover that an advance ruling pronounced by it under section 98(4) or 101(1) or 101C ; has been obtained by the applicant or appellant fraudulently or by way of suppression of material facts or misrepresentation of facts, the Authorities are empowered to declare such a ruling to be void ab initio. The above would result in all the provisions of this Act becoming applicable to the applicant or appellate as if such advance ruling had never been made. Opportunity of being heard:- No such order can be passed by the AAR or Appellate Authority without giving an opportunity of being heard to the applicant/appellant. Sent a Copy of order :- A copy of the order of advance ruling to be void shall be sent to the applicant, the concerned officer and the jurisdictional officer. Exclude the period for calculating period for initiating proceeding under section 73 or section 74 The period beginning with the date of advance ruling and ending with the date of order declaring the advance ruling to be void ab initio shall be excluded in computing the period for issuance of Show-cause notice and adjudication order under Sections 73(2) and 73(10 and Section 74(2) and 74(10) . Sections 73(2) and 73(10) specify the time limit within which a show cause notice and adjudication order respectively, may be issued in a case where the tax is not paid, short paid, erroneously refunded or ITC has been wrongly availed or utilised for any reason, other than the reason of fraud or any wilful-misstatement or suppression of facts to evade tax. Similarly, Section 74(2) and 74(10) specifies the time limit within which a show cause notice and adjudication order respectively, may be issued in a case where the tax is not paid, short paid, erroneously refunded or ITC has been wrongly availed or utilised by reason of fraud or any wilful misstatement or suppression of facts. The period of limitation for raising a demand for recovery under Section 73(10) and Section 74(10) has been pegged at 3 years and 5 years respectively from the date of furnishing the annual return for the year in respect of which a demand is being raised or within three years from the date of erroneous refund. The said period of 3 and 5 years shall be extended by the period equivalent to the period beginning with the date of advance ruling and ending with the date of order declaring the advance ruling to be void ab initio, to enable the officer to issue a show cause notice or adjudication order. Note : What this section seeks to do is to provide the proper officers an additional time period to recover such amount from the applicant/appellant as would have been payable by him had he not sought the advance ruling fraudulently Section 104(2) A copy of the order made shall be sent to the applicant, the concerned officer and the jurisdictional officer.
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