TMI Blog2013 (12) TMI 1462X X X X Extracts X X X X X X X X Extracts X X X X ..... ting on the decision, the assessee can manage his affairs better. The authority who are subordinate to the said Advance Rulings Authority are bound by the opinion of the Advance Rulings Authority. At the same time, once the said question arises for consideration before any officer or authority, the said officer or authority is competent to decide the said issue of the assessee. If he is aggrieved, he is provided with a statutory remedy of preferring an appeal before the appellate authority as well as to the Tribunal. It is only after inspection of the premises, the authorities issued notices to the assessee calling upon him to produce the documents, a recommendation is made for initiation of reassessment proceedings, and a demand for &# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ks contract for Transmission Distribution and electrical Balance of Plant for power sector, electrification of rail system and Airport Terminals, etc. 3. The assessee applied by way of a tender, for supply, erection, testing and commissioning of power supply receiving/distribution system, for Bangalore Metro Rail Project, a Joint Venture Project between the Government of Karnataka and Union of India for implementing the Bangalore Metro Rail Project. The assessee was awarded the contract and it entered into a contract dated 14-12-2009. The appellant has filed its monthly returns regularly. On 1-8-2011, the audit authority issued a notice in Form VAT 275 under Section 52(1) of the Act, calling upon the assessee to produce the books of ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reafter, the audit authority visited the business premises on 16-1-2012 and recorded the statement for audit purposes. Thereafter, Enforcement Authority has made a recommendation to the Joint Commissioner of Commercial Taxes to take up the cases for audit and reassessment. On 30-4-2012, a third notice came to be issued to the assessee calling upon the assessee to produce the books of account. It is in this background, on 25-9-2012, the assessee filed an application in Form Vat No. 540 seeking clarification from the Authority for Advance Rulings on exigibility of transaction and liability of tax deducted at source under the Act. The Advance Rulings Authority has rejected the application filed by the assessee on the grounds that the question ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has already paid ₹ 2 crores as tax, subject to the result of the reassessment proceedings. A recommendation is already made for initiation of reassessment proceedings. It is in this background, the authority was justified in not entertaining the application as the very question which is raised in this application is pending consideration before the authorities and therefore, he submits that no case for interference is made out. 6. Rule 165(8) of the Karnataka Value Added Tax Rules, 2005 on which reliance is placed, reads as under :- The Authority shall not admit the application where the question raised in the application :- (a) Is already pending before any officer or authority of the Department or any other Authority c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a change in law or facts on the basis of which the order was passed. (6) Where the authority finds, on a representation made to it by any officer or otherwise, that an order passed by it was obtained by the applicant by fraud or misrepresentation of facts, it may, by order, declare such order to be void ab initio and thereupon all the provisions of this Act shall apply to the applicant as if such order had never been made. (7) Subject to the provisions of Section 66, every order passed, under this Section shall be final. 7. A reading of the aforesaid provisions make it very clear that the authority shall not admit or allow the application where the question raised in the application is already pending before any officer or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... application before the Advance Rulings Authority. If the authorities have accepted the returns as it is and if they had no grievance whatsoever, they would not have called upon the assessee to produce the books of account and would not have collected a sum of ₹ 2 crores as tax even under protest. So prima facie, the question of exemption is pending before the officer concerned for adjudication and therefore, once such a question is pending before any authority or officer for adjudication, the aforesaid provision makes it clear that an application for advance rulings is not maintainable. That, is precisely what has been said. 8. In the light of the aforesaid facts, we are satisfied that there is no illegality committed in refusing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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