Advance Ruling cannot be Challenged in Writ Petition: Bombay HC dismisses Jotun India’s plea for redetermination of GST Rate of Marine Paint [Read Order]

The Bombay High Court has recently dismissed a plea of the Paint manufacturer Jotun India against the order of the Advance Ruling Authority, as the same cannot be challenged under writ petition as limited enquiry in respect of Advance Ruling into an appellate enquiry.

In the case at hand, the Authority was considering the interpretation and classification of entries under the CGST Act. In our opinion, the Appellate Authority has rightly distinguished all these decisions cited observing that under this regime prime test is whether the product is marketable or not.

The Petitioner manufactures and supplies marine paint used on the hull of the ships. One of the major supplies of the Petitioner is marine paints, and the marine paints manufactured by the Petitioner are used on vessels as anti-fouling paints.  These goods are classified under a Schedule which lists them along with Paints.

The Petitioner applied for an advance ruling that marine paints supplied by the Petitioner should be considered as part of the ship/vessel and should be classified accordingly.

Both the Advance Ruling Authority and the Appellate Authority have rejected the interpretation of the Petitioner. They have held that the marine paint supplied by the Petitioner cannot be classified as part of the ship.

It was observed by the Division Bench of Justice Gauri Godse and Justice Nitin Jamdar that, “The Court will have to be mindful of the fact that the advance ruling is binding in a limited sense. Our enquiry is whether the orders passed by both the Advance Ruling Authorities, which have limited application, need any interference in writ jurisdiction in this petition filed by the Petitioner, who has sought the advance ruling.”

It was further observed that, “The Petitioner, who sought an advance ruling as to which entry the marine paint should fall, was given full opportunity of hearing” and the petition was dismissed.

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