The Punjab and Haryana High Court has admitted a petition challenging the provisions of sections 96 and 99 of the Central Goods and Services Tax Act, Haryana and Punjab GST laws relating to the Constitution of AAR and AAAR challenged in Punjab and Haryana High Court.
A bench comprising Justice Ajay Kumar Mittal and Justice Manjari Nehru Kaul admitted the petition and issued a notice to the Centre-State Governments.
The petitioners urged the Court to declare the above provisions in the GST Acts pertaining to AAR/AAAR constitution as void, defective & unconstitutional, and also prayed for urgent stay of the impugned provisions and notifications in this regard.
An advance ruling helps the applicant in planning his activities which are liable for payment of GST in advance. It also brings certainty in determining the tax liability, as the ruling given by the Authority for Advance Ruling is binding on the applicant as well as Government authorities.
It also helps in avoiding long drawn and expensive litigation at a later date. Seeking an advance ruling is inexpensive and the procedure is simple and expeditious. It thus provides certainty and transparency to a taxpayer with respect to an issue which may potentially cause a dispute with the tax administration. A legally constituted body called Authority for Advance Ruling (AAR) can give a binding ruling to an applicant who is a registered taxable person or is liable to be registered. The advance ruling given by the Authority can be appealed before an Appellate authority for Advance Ruling (AAAR).
An advance ruling pronounced by AAR or AAAR shall be binding only on the applicant and on the concerned officer or the jurisdictional officer in respect of the applicant.
