AAR cannot decide constitutional validity of ‘liability to pay tax’

Khaitan Chemicals and Fertiliser (GST AAR Madhya Pradesh) Authority is of the view that based on the detailed reading and understanding of Section 97 of the CGST Act, an application for Advance Ruling can only be made to determine the ‘liability to pay tax’ on any goods or services or both. Therefore, no application can be made to determine whether the liability is constitutionally valid or not. Such power rests only with the courts. The applicant have quoted the case of Hon’ble Gujarat High Court wherein the court upheld that the levy of IGST on reverse charge basis amounts ...