Rejection of application by AAR without giving opportunity of hearing to Appellant is invalid

In re A.M. Abdul Rahman Rowther & Co (GST AAAR Tamilnadu)

We have carefully considered the various submissions made by the Appellant and the applicable statutory provisions. The issue before us for determination is whether, the rejection of the application filed by the Appellant seeking Advance Ruling by the Lower Authority is as per the provisions of Law and Principles of Natural Justice.

We find that the Lower authority on receipt of the application of the appellant has extended an opportunity to be heard in person as per the provisions prescribed under Section 98. The jurisdictional officers were also intimated on the application filed by the appellant. From the details available on record, it is seen that the revenue has not represented before the lower authority at the time of hearing. The lower authority has heard the case of the appellant. But subsequently, the CGST officers of Trichy commissionerate has responded to the information sought on the application of the appellant, wherein it is stated that a summon was issued on 8th Jan 2019 and Statement recorded on 9t^h Jan on the issue of short payment of compensation cess by misclassifying the product supplied by the appellant. On receipt of the said comments, the lower authority, without extending another opportunity to the appellant to hear their contentions on the comments of the jurisdictional authority has rejected the ‘applicant’ stating that the application is filed when the proceedings are pending.before the GST authorities.

The appellant is aggrieved of the said decision and considers that the principles of natural justice is not followed in as much as they have not been extended an opportunity to comment on the submissions of the CGST authorities that the question raised in the application was already pending with the department. As per their contentions, the summons were issued in connection with possible short payment of GST and GST Compensation Cess and is not in relation to the questions seeking the Ruling. We therefore find, that the justice be met by remanding the case to the lower authority, to extend an opportunity to the’appellant and then decide the case as per the provisions of law. We further find that this authority is empowered vide section 101(1) to Pass such order as deemed fit.

FULL TEXT OF ORDER OF APPELLATE AUTHORITY OF ADVANCE RULING, TAMILNADU

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