In re Maddi Seetha Devi (GST AAAR Telangana)
In the case of In re Maddi Seetha Devi (GST AAAR Telangana), the Appellate Authority for Advance Ruling (AAAR) examined two key issues raised by the appellant. The appellant sought clarification on whether GST applies when the consideration for a service was received before the enactment of the CGST Act, 2017, under Section 142(11)(b), and whether GST must be paid if the developer has already paid GST on the entire value of a construction complex, including costs incurred for flats transferred to the landowner. Regarding the first issue, the AAAR ruled that it lacked jurisdiction to determine the applicability of Service Tax under the Finance Act, 1994, as its mandate is restricted to issues under the CGST/SGST Act, 2017. Consequently, the appellant’s request to classify Transfer of Development Rights (TDR) as attracting Service Tax before the GST era was not accepted. On the second issue, the AAAR clarified that new grounds not raised before the Advance Ruling Authority cannot be introduced at the appellate stage. Citing the Supreme Court’s precedent in Commissioner of Customs & Excise, Goa vs Dempo Engineering Works Ltd., the AAAR emphasized that appeals cannot succeed based on arguments or issues not previously raised. Therefore, the appellant’s attempt to query GST liability on grounds not originally presented was dismissed. The AAAR upheld the original ruling of the Advance Ruling Authority, dismissing the appeal in its entirety. This decision reinforces the principle that the appellate process is not an avenue for introducing new claims.
Read AAR Order: GST on Transfer of development rights by landowner to developer
FULL TEXT OF THE ORDER OF APPELLATE AUTHORITY FOR ADVANCE RULING,TELANGANA
