Case Law Details
In re Global Foods (GST AAR Punjab)
1. Background: The Advance Ruling Authority in Punjab rejected the application submitted by Global Foods due to non-compliance with the prescribed fee requirements. The applicant, engaged in the manufacturing and sale of rice and its allied products, sought clarification on the applicability of benefits under Notification No. 48/2017 for the enhancement or modernization of production capacity.
2. Proceedings: Global Foods submitted an application for advance ruling but only deposited Rs. 5,000 as the fee under SGST, failing to pay the prescribed fee of Rs. 5,000 for CGST. Notices were issued on 28.08.2022 and 27.09.2022, directing the applicant to rectify the deficiency by depositing the required fee for CGST as prescribed under the Act. Despite opportunities provided, the applicant did not submit the pending fee.
3. Rejection Basis: The rejection was based on the applicant’s failure to deposit the complete fee required for filing an Advance Ruling application. The regulations mandate a fee of Rs. 10,000 for such applications, with Rs. 5,000 allocated for both CGST and SGST. As the applicant did not rectify the deficiency within the given opportunities, the application was rejected without addressing the substantive questions raised.
4. Note on Applicable Acts: The ruling emphasized that the provisions of the CGST Act, 2017, and PGST Act, 2017, are nearly identical. Specific reference to dissimilar provisions in the two acts is highlighted, and a reference to provisions in one act implies a reference to the corresponding provisions in the other act.
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