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Case Law Details

Case Name : In re JK Paper Ltd (GST AAR Gujarat)
Appeal Number : Advance Ruling no. GUJ/GAAR/R/2022/21
Date of Judgement/Order : 12/04/2022
Related Assessment Year :
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In re JK Paper Ltd (GST AAR Gujarat)

The Gujarat Authority for Advance Ruling is a creature of the statute and is bound to pass Rulings within the confines of the statute. We find it improper and contrary to the statutory provisions of GST Act to replace the word ‘Notification’ in said section 97(2)(b) with the word ‘ CGST Rules’ as submitted by Shri Vaja. We refer to the case law of JSW Energy vs UoI- 2019 (27) GSTL 198 ( Bom.) wherein H’ble High Court at Mumbai held that High Court cannot go into merits of decision given by GST AAAR ( Appellate Authority for Advance Ruling). Thus it is all the more imperative, not just imperative on us, but we are statutory bound, to pass Rulings within the functional jurisdiction carved out for the AAR vide the statutory provisions of section 97(2) CGST Act. The word used in section 97(2) CGST Act is ‘shall’, to explain in detail, the advance ruling question shall be in respect of, as per provisions of section 97(2) CGST Act. We shall not trespass and overreach our functional jurisdiction laid down vide Section 97(2).

We note that the duties and responsibilities conferred on this Authority by the Parliamentary Act should be exercised in accordance with law. With the said H’ble High Court Order dated 7-6-19 this Authority finds it legal and proper to pass Rulings, as per section 95(a), on matters as stipulated in section 97(2)(b). We find it overreach and encroachment to Rule on matters beyond our statutory and functional jurisdiction as defined in Section 97(2) CGST Act. For to pass Rulings on those matters pertaining to GST scheme of law, beyond the jurisdiction carved in Section 97(2) CGST Act is not proper and legal. For if the submission of Shri Vaja is to be favoured upon by us, issues such as validity of a Notification/ constitutionality or legality of a Notification etal would also have to be admissible as maintainability of AAR Application before us. We find no reason to substitute the phrase ‘CGST Rules’ for the word ‘Notification’ referred to in section 97(2)(b). We find no merit in this submission and hold that AAR has its carved out functional jurisdiction to pass Rulings as per Section 97(2). To accept Shri Vaja’s submission is to open almost everything under the Sun pertaining to GST; even to decide on legality or correctness of a Notification. We hold that this is not the intention of the competent Legislature while enacting the GST Act. Legislature enacted section 97(2) CGST Act carving the Authority’s functional jurisdiction.


M/s. JK Paper Limited (hereinafter referred to as ‘JKPL’) have two integrated Pulp, Paper and packaging board Plants. (I) JK Paper Ltd. Unit: JK Paper Mills, having GSTIN No. 21AAACT6305N1ZG which is situated at Jaykaypur Dist. Rayagada, Odisha and the other is (II) JK Paper Ltd. Unit: CPM (hereinafter referred as ‘JKPL CPM’) , having GSTIN No. 24AAACT6305N1ZA which is situated at Fort Songadh Dist Tapi Gujarat.

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July 2024