Case Law Details
In re M/s. Mukesh Trading Co. (Mukesh Agarwal) (GST AAR Punjab)
1. Introduction: In the case of Mukesh Agarwal, a work contractor engaged in construction projects for various government departments, the GST AAR Punjab rejected the advance ruling application due to the applicant’s failure to submit the prescribed ARA-01 form and the requisite fee.
2. Background and Proceedings: Mukesh Agarwal, based in Malout with GST Registration No. 03AALPA2772Q1ZI, had secured a bid for construction work that included providing a new Toyota Innova Crysta Zx automatic vehicle to the awarder. The running expenses of the vehicle during the project were to be borne by the applicant, and upon completion of the work, the vehicle was to be transferred to the awarder at no cost.
Despite multiple notices issued on 25.03.2022 and 27.09.2022, the applicant failed to submit the application in the prescribed format (ARA-01) and did not deposit the requisite fee of Rs. 10,000 (Rs. 5,000 each for CGST and SGST), as required under the GST Act.
3. Questions on Which Advance Ruling is Sought: The applicant sought clarification on three questions related to the input tax credit (ITC) of the vehicle used in the work contract, the transfer of property in the execution of the work contract, and the eligibility to claim ITC on the purchase of the new vehicle.
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