Case Law Details
In re Sri Tulasi Industries (GST AAR Telangana)
Tulasi Industries Withdraws GST Advance Ruling Application: M/s Sri Tulasi Industries had filed an application under Section 97 of the Central Goods and Services Tax Act, 2017, and the Telangana Goods and Services Tax Act, 2017, seeking clarification on the refund eligibility of accumulated Input Tax Credit (ITC) due to the inverted duty structure. The company, engaged in edible oil refining and packing, stated that while their output tax rate was 5%, their input tax was charged at 12% and 18%, leading to an accumulation of ITC. They sought confirmation on whether they were eligible to claim a refund of this accumulated credit.
However, before the Authority for Advance Ruling (AAR) could issue a decision, the applicant submitted a withdrawal request through a letter dated October 21, 2024. The applicant did not provide specific reasons for the withdrawal, and the AAR accepted the request without examining the merits of the case. As a result, the application, originally filed on August 21, 2023, was disposed of under Section 98 of the CGST and TGST Acts.
With the disposal of Sri Tulasi Industries’ application, no ruling was provided on their ITC refund eligibility. Businesses facing similar ITC accumulation issues must rely on existing legal interpretations or approach appellate forums for clarity. The case highlights the need for companies to assess the evolving legal landscape before seeking advance rulings, as withdrawal does not provide any authoritative clarification on tax positions.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, TELANGANA
The present application filed under Section 97 of the Central Goods and Services Tax Act, 2017 and the Telangana Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and TGST Act” respectively] by M/s Sri Tulasi Industries, the applicant, seeking an advance ruling in respect of the following questions:
1. We are in the business of Edible oil refining and packing. Out output tax is @ 5% and whereas our purchases are 12% and 18%. As the GST rate of outward supply is less than the GST rate of Inward Supply out ITC balance is Pooling up. So, we request to keep refund of ITC that is accumulated in the credit ledger on the basis of inverted duty structure. So please we need a clarification on this issue and allow us to claim refund of ITC accumulated due to Inverted duty structure.
The applicant requested through a letter dated 21-10-2024 that they wants to withdraw the Advance Ruling Application filed by us, may be allowed to voluntarily withdraw their application filed on 21-08-2023.
The request of the applicant to withdraw their application voluntarily and unconditionally is hereby allowed, without going into the merits or detailed facts of the case.
ORDER
(under section 98 of the Central Goods and Services Tax Act, 2017 and the Telangana Goods and Services Tax Act, 2017)
The Application filed by M/s Sri Tulasi Industries, dated 21-08-2023 in GST ARA Form No. 01 is disposed off, as being withdrawn by the applicant voluntarily and unconditionally.
