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TMI Blog2025 (3) TMI 1443X X X X Extracts X X X X X X X X Extracts X X X X ..... jurisdictional officer or the appellant within a period of six months from the date of the order. Provided that, no rectification which has the effect of enhancing the tax liability or reducing the amount of admissible input tax credit shall be made, unless the appellant has been given an opportunity of being heard. 2. Under Section 103 (1) of the Act, this advance ruling pronounced by the Appellate 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. Under Section 103 (2) of the Act, this advance ruling shal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CGST Act and the TGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the corresponding provision under the TGST Act. Further, for the purposes of this Advance Ruling, the expression 'GST Act' would be a common reference to both CGST Act and TGST Act. Brief facts: 3. Maddi Seetha Devi, is an individual (landowner) holding a parcel of land to the extent of 20 acres at Hyderabad and has entered in to Development Agreement with M/s PHL, a builder (developer-Promoter) and entrusted her land to M/s PHL by way of Joint Development Agreement (JDA) in the year 2016. As per agreement, M/s PHL will hand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loper for the landowner? Yes. Transfer of development rights by the landowner to the developer is consideration received by such developer for supply of construction service. 2 Whether the liability to pay GST or service tax as applicable arises on the developer immediately on receipt of development rights or immediately on conveyance of the flats to be constructed by way of an allotment letter? The liability to pay GST by the developer-promoter shall arise at the time of transfer of possession or right in the constructed complex or constructed flats and not at the time of receipt of development rights 6. Aggrieved by the decision of Advance Ruling the appellant filed present appeal challenging the Ruling of Authority on the followin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that notwithstanding anything contained in Section 13 of the CGST Act, 2017, no tax shall be payable on services under this Act to the extent the tax was leviable on the said services under Chapter V of Finance Act, 1994; vi. when GST itself is not leviable on the activity for which consideration was received prior to introduction of GST and service tax was required to be paid at the time of receipt of such consideration, the question of payment of GST at any point of construction does not arise; vii. Even assuming that GST is liable to be paid at the point of taxation as held by the lower authority, the learned authority failed to give its opinion, considering the legal position settled in the case of existing law which applied to GST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made in their appeal and requested to consider the same. Discussions and Findings: 9. This Authority has carefully gone through the case records and submissions made by the appellant. 10. The issues raised before this Authority by the appellant in their prayer are summarised hereunder. a. whether GST is applicable when consideration for the service was received prior to enactment of CGST Act, 2017 in the light of clause (b) of Section 142 (11) of GST Act, 2017; b. Whether GST is required to be paid when the developer has paid GST on the entire value of construction complex including the cost incurred for construction of flats to the landowner appellant. 11. As regards the first point, the appellant is of opinion that since the JDA w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an appeal when admittedly these grounds were not raised before the original authority.
12.2 Hon'ble Supreme Court has in the case of Commissioner of Cust & C Ex, Goa vs Dempo Engineering Works Ltd {reported in 2015 (319) ELT 359 (SC)}, held that Tribunal cannot allow an appeal on new grounds when the same were neither raised in reply to the show cause notice nor were argued before the Adjudicating Authority.
12.3 Thus, when a question is not raised before the Advance Ruling Authority, the Appellate Authority cannot entertain the same in appeal.
13. In view of the above, the following order is passed.
ORDER
The appeal is dismissed and the impugned ruling of Advance Ruling Authority is upheld. X X X X Extracts X X X X X X X X Extracts X X X X
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