Travancore Mats & Matting Co. – 2021 (54) G.S.T.L. 447 (A.A.R. – GST – Kerala)

Application for Advance ruling cannot be admitted, where the question raised in the application is already pending or decided in any proceedings.

Facts– In this case, the applicant is mainly engaged in the manufacture of latex tufted coir floor coverings [HSN 5703], jute basket [HSN 6305] and latex backed coir mats [HSN 5702].

There were a questions before AAR that whether a debit note can be issued by the applicant for the difference of the rate of tax charged in the tax invoice as specified under Section 34(3) of the CGST Act and whether the Bhavani branch of the applicant having GSTIN 33AABFT8331N1Y in Tamil Nadu can raise debit note for the difference of the rate of tax charged in the tax invoice issued to the applicant on the branch transfer and on supplies made by them to other customers and whether the applicant can avail input tax credit on such debit note raised by the Bhavani branch. Question arisen on account of objection raised by departmental officer.

Held – In order of AAR it was held that Section 95(a) of the CGST Act “advance ruling” means a decision provided by the Authority or the Appellate Authority to an applicant on matters or on questions specified in sub-section (2) of Section 97 or sub-section (1) of Section 100, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. As per Section 95(c) of the CGST Act; “applicant” means any person registered or desirous of obtaining registration under the Act. As per section 25(4) Bhavani branch is treated as distinct person. hence, not covered in the meaning of applicant.

Under section 98 the Authority shall not admit the application where the question raised in the application is already pending or decided in any proceedings in case of an applicant under any of the provision of this Act. The authority is a creature of statute and has to function within the limits of the jurisdiction granted to it and the questions raised by the applicant are not in respect of any matter that is specified in Section 97(2) of the CGST Act and also in respect of activity/transaction proposed to be performed by a registered person who is not within the jurisdiction of this authority. Therefore, authority is not having jurisdiction to issue rulings on the questions raised by the applicant.

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