Case Law Details
In re M/s. International Traders (Kirti Arora) (GST AAR Punjab)
1. Overview: M/s International Traders, engaged in the import of dry fruits from Pakistan, sought an advance ruling on the applicable tax rate for the supply of dry dates. However, their application was rejected by the Authority for Advance Ruling (AAR) in Punjab due to non-compliance with prescribed procedures.
2. Proceedings: The applicant did not adhere to the prescribed format (ARA-01) for the advance ruling application and failed to submit the required fee of Rs. 10,000 (Rs. 5,000 each for CGST and SGST). Notices were issued on 25.03.2022 and 27.09.2022, instructing the applicant to rectify the deficiencies by submitting the application in the prescribed format and depositing the requisite fee. Despite multiple opportunities, the applicant did not comply.
3. Questions Raised: The applicant intended to seek clarity on the applicable tax rate for the supply of dry dates imported from Pakistan. However, due to non-compliance, the AAR did not address the substantive question.
4. Rejection Basis: The rejection was based on the applicant’s failure to fulfill the procedural requirements. The regulations stipulate a fee of Rs. 10,000 for advance ruling applications, with Rs. 5,000 allocated for both CGST and SGST. Since the applicant did not rectify the deficiencies within the provided opportunities, the application was rejected without addressing the substantive tax rate query.
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