Power Grid Corporation of India Ltd Vs State of Rajasthan (Rajasthan High Court)
Rajasthan High Court held that there is no restriction that application for advance ruling can be made only by the supplier. Even registered person liable to pay tax on reverse charge can file an application for advance ruling.
Facts- The petitioner is registered under the Goods and Services Tax Act, 2017 and is engaged in transmission of electricity. During the course of business, petitioner engages contractors. In course of execution of contract supply of material ex-work is made. The contractor transports goods and raises invoice for transportation. The petitioner filed an application for an advance ruling on the issue as to whether in facts of the case, transportation of goods is exempt under Serial No.18 of Notification No.12/2007 Central Tax (Rate). The AAR held application u/s. 97 of the Central Goods and Service Tax Act, 2017 is not maintainable, as petitioner was not the supplier. Hence, the present petition.
Conclusion- A registered person or a person desirous of obtaining registration under the Act falls within ambit of the ‘applicant’ in Section 95. It is compulsory for the petitioner to get registered, under Section 24 of CGST Act, being liable to pay tax on reverse charge basis. The interpretation of definition of ‘Advanced Ruling’ by the AAR has a fallacy.
