The Appellate Authority for Advance Ruling (AAAR) in Uttar Pradesh rejected the Goods and Service Tax Appeal filed by the Uttar Pradesh Metro Rail Corporation on the grounds of lack of locus standi.
Uttar Pradesh Metro Rail Corporation Limited, the appellant assessee filed the appeal under Section 100 of the Central Goods and Service Tax Act (CGST), 2017, and Uttar Pradesh Goods and Service Tax Act, 2017 against the Advance Ruling Order issued by the Authority for Advance Ruling, Uttar Pradesh.
The assesee was engaged in the construction, erection, and commissioning of metro rail facility all over the state of Uttar Pradesh and currently doing the work of construction, erection, and commissioning of a metro rail facility in Kanpur for which the existing electric poles, power lines, and transformers are to be shifted from one place to another to keep the electrical clearances safe as per the Indian Electricity Rules, 1956.
The assessee sought the authority of advance ruling for the decision of liability of the assessee on the payment of the Goods and Service Tax (GST) and the authority rejected the application.
The assessee submitted the decision of the Calcutta High Court and contended that the application filed by the assessee before the AAR was well within the jurisdiction of considering the application on merits rather than rejecting the same on the ground of having no locus standi.
The Appellate Authority observed that the assessee being a service recipient was not eligible to seek an advance ruling under the provisions of Section 95 (a) of the CGST Act and relied on the decision of the Uttar Pradesh Authority of Advance Ruling.
The two-member bench comprising Uma Shanker and Ministhy upheld the decision made by the Authority of Advance Ruling against the assessee.
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