The Telangana State Authority for Advance Ruling (TSAAR) ruled that the advance ruling under section 104(1) of the Central Goods and Service Tax Act, 2017 (CGST) was void ab inition on the ground of suppression of material facts by the applicant.
M/s. Srico Projects Pvt Ltd, the applicant filed an advance ruling which was pending in the proceedings before the Directorate General of GST Intelligence (DGGI), Hyderabad Zonal Unit.
A notice was issued for the appearance of Personal hearing. K. Ramesh, the authorised representative of the applicant submitted that they were unable to attend the personal hearing as their director is out of the country and that the orders may be passed as per merits and rules.
The advance ruling was sought on the issue that whether the application filed by the applicant was pending in theproceedings before the Directorate General of GST Intelligence, Hyderabad Zonal Unit was void ab-initio under section 104(1) of the CGST Act.
The authority observed that according to the Section 104(1) of the CGST Act, in certain circumstances, the Authority or Appellate Authority may declare an advance ruling as void ab-initio if obtained by fraud, suppression of material facts, or misrepresentation.
It was also observed that according to the Section 98(2) of the CGST Act, the AAR shall not admit the application where the question raised in the application is already pending or decided in any proceedings in the case of an applicant under any of the provisions of the CGST Act.
The two-member bench comprising S.V. Kasi VisweswaraRao (Additional Commissioner of State Tax) and Sahil Inamdar (Additional Commissioner of Central Tax) ruled that the taxpayer had not brought the issue to the notice of the Authority for Advance Ruling at any stage of the Advance Ruling proceedings including at the time of the personal hearing.
Additionally, it was ruled that the applicant had obtained the Advance Ruling by suppressing the facts and hence the orderissued was liable to be declared as void ab initio under theSection 104(1) of the CGST Act.
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