TMI Blog2023 (8) TMI 1295X X X X Extracts X X X X X X X X Extracts X X X X ..... 24.06.2022 having OR No. 89/2022 dated 16.06.2022 determining tax amount of Rs. 474 lakhs Further, the said incident report was issued after the statement deposed by Registrar of the applicant on 18.04.2022 and 14.06.2022. Therefore, it is apparent that proceedings are pending against the applicant on the date of filing of advance ruling online application on 27.06.2022 and liable to be rejected under first proviso to Section 98(2) of the Act. The advance ruling application is rejected. - SHRI R. GOPALSAMY, I.R.S., AND SMT N. USHA, MEMBER, 1. Any appeal against this Advance Ruling order shall be before the Tamil Nadu State Appellate Authority for Advance Rulings, Chennai as under Sub-Section (1) of Section 100 of CGST Act/TNGST Act 2017, within 30 days from the date on the ruling sought to be appealed is communicated. 2. In terms of Section 103(1) of the Act, Advance Ruling pronounced by the Authority under Chapter XVII of the Act shall be binding only- (a) on the applicant who had sought it in respect of any matter referred to in sub-section (2) of Section 97 for advance ruling. (b) on the concerned officer or the jurisdictional officer in respect of the applicant. 3. In terms ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in GST Acts; according to Black's Dictionary, Fees is a charge fixed by law for services of public offers or for use of a privilege under control of Government; applicant is a statutory body set up by an Act of State Government and the fees collected is for a privilege under control of Government and takes a position equivalent to taxes and duties which is not covered by GST Act; applicant is a Government entity under GST law; fees collected by the applicant are for discharging the applicant's statutory functions as stipulated in the Act and no service is rendered to the parties from whom the fees are collected. The above facts conclusively prove that the applicant is discharging its sovereign function and no service is rendered by the applicant. 2.5 The applicant vide letter dated 05.01.2023 relied on the ruling of Maharashtra Authority for Advance Ruling given to M/s Children of the World India Trust, as a second alternate ground for interpretation of law, while Doctrine of mutuality is the first alternate ground for interpretation of law. 2.6 The applicant submitted three different letters dated 13.01.2023 to substantiate their ground that no proceedings were initiated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he judgement of Hon'ble Allahabad High Court in the case of G.K. Trading Company vs Union of India. The applicant contests that non-disclosure of enquiry / summons under Section 70 of CGST Act as 'proceedings' in the advance ruling application of the applicant does not amount to suppression and they are eligible for a ruling by AAR and requested for ruling. 3. The applicant, after consent, was given an opportunity to be virtually heard on 12.01.2023. Sri V. Swarninathan, Chartered Accountant, the Authorized Representative (AR) of the applicant appeared for the personal hearing and reiterated the submissions. However, members asked about the investigation being conducted by DGGI. The AR stated that DGGI had collected information from the applicant and they are not aware of any case booked by DGGI. The personal hearing was continued on 16.03.2023, in physical mode, wherein the AR appeared and stated that DGGI had issued summons under Section 70 and collected information / documents. He further requested to take on record their submissions on 13.01.2023 and sought further time to submit additional grounds as to why they are eligible for advance ruling and submitted the sam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , transfer, barter, exchange, license, rental lease or disposal made or agreed to be made, the concerned State authority states that as per Notification No. 11/2017 dated 28.06.2017 vide Si. No. 608 of Annexure has specific entry 99314 Nursing and physiotherapeutic services and Si. No. 600 with entry 999294 - 'Other Education and training services nowhere else classified' attracts 9% CGST and 9% SGST. 4.4.3 With regard to the applicant's question that fees are not a consideration since there is no supply involved, the State authority states that the services offered by the Council are against Primary Processing fees, Annual Recognition fee, Inspection fee, and Enhancement of seats / Re-inspection fee. These services are rendered only when fees mentioned are paid, which clearly establishes that the service is for a consideration and therefore, there is supply of services involved. 4.5 Intelligence-II of the State vide letter RC. No. 4272/2022/A9 dated 20.07.2022 informed that no proceeding is pending with them in respect of the applicant. 5. DGGI, Chennai Zonal Unit vide email dated 28.06.2022 sent an Incident Report No. 89/2022 dated 24.06.2022 having OR No. 89/2022 dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relied on judicial pronouncements to assert that the present application for- advance ruling is not barred by first proviso to section 98(2) of the Act. For ease of reference, the relevant statutory provisions of the Act are reproduced below; 8.2 Section 98(2) of the Act reads as follows; (2) The Authority may, after examining the application and the records called for and after hearing the applicant or his authorised representative and the concerned officer or his authorised representative, by order, either admit or reject the application: Provided that the Authority shall not admit the application where the question raised in the application is already pending or decided in any proceedings in the case of an applicant under any of the provisions of this Act: Provided further that no application shall be rejected under this sub-section unless an opportunity of hearing has been given to the applicant: Provided also that where the application is rejected, the reasons for such rejection shall be specified in the order. 8.3 Chapter XVII - Advance Ruling is a benevolent piece of legislation in the Act with an objective to obviate litigation at initial stage of the issues arising in tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er different context and therefore the said ruling relied by the applicant do not apply to the issue on hand. 8.7 However, Hon'ble High Court of Andhra Pradesh in the case of Master Mind Vs Appellate Authority for Advance Ruling (2022) 1 Centax 288 (A.P.)/ 2023 (70) G.S.T.L. 45 (A.P.) 123-11-2022] held that Application for advance ruling is not admissible when proceedings in relation to same issue had commenced prior to filing of such application and rulings of both AAR and AAAR were to be set aside. 8.8 The applicant contests that non-disclosure of enquiry / summons under Section 70 of CGST Act as 'proceedings' in the advance ruling application of the applicant does not amount to suppression and they are eligible for a ruling by AAR. The applicant is interpreting the term 'proceedings' in isolation with reference to Section 73 and 74 of the Act without considering the first proviso to section 98(2) of the Act comprehensively. The said first proviso is reproduced below; Provided that the Authority shall not admit the application where the question raised in the application is already pending or decided in any proceedings in the case of an applicant under any of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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