Case Law Details
In re Ammanamanchi Teja Swaroop (GST AAR Telangana)
M/s Ammanamanchi Teja Swaroop 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 an advance ruling on the tax treatment of two business activities. The applicant sought clarity on whether their Farm-to-Door Flower Supply and an online marketplace for hiring expert flower arranging professionals could operate under the same GST registration. Additionally, they requested confirmation on the applicable tax rates—0% for flower supply and 18% for marketplace revenue.
However, before the Authority for Advance Ruling (AAR) could examine the matter, the applicant submitted a withdrawal request via email on October 10, 2024. The applicant stated that they were no longer engaged in the business and were not interested in pursuing the ruling. The AAR allowed the withdrawal unconditionally, without delving into the case’s merits or legal aspects. As a result, the application, initially filed on December 8, 2023, was officially disposed of under Section 98 of the CGST and TGST Acts.
Judicial precedents indicate that applicants are permitted to withdraw advance ruling applications before a ruling is issued. In Re: Tathagat Health Care (2021) and Dhanapal Logistics Pvt. Ltd., In re (2022), the respective AARs allowed withdrawal requests without discussing the case details. Such rulings highlight the discretion provided to businesses in seeking or retracting tax clarifications as per their operational needs.
With this withdrawal, no GST ruling was provided on the tax applicability of flower supply and online marketplace services. Advance rulings are generally sought to ensure tax compliance and reduce future disputes, but withdrawals indicate a shift in business priorities. Businesses must carefully assess the necessity of filing advance ruling applications, as withdrawal does not establish any legal precedent or tax certainty for similar transactions.
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 Ammanamanchi Teja Swaroop, seeking an advance ruling in respect of the following questions:
1. Can both activities (Farm-to-Door Flower Supply and online marketplace for Hiring Expert Flower Arranging Professionals) operate under the same company for GST purposes?
2. Is the GST rate 0% for the supply of flowers in the Farm-to-Door Flower Supply activity?
3. Is the GST rate 18% for the revenue earned from the Online Marketplace for Hiring Expert Flower Arranging Professionals?
The applicant requested through an e-mail dated 10-10-2024 that they may be allowed to voluntarily withdraw their application filed on 08-12-2023 for following reasons:-
“They are no longer in that business, and not interested in taking this forward.”
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 Ammanamanchi Teja Swaroop, dated 08-12-2023 in GST ARA Form No. 01 is disposed off, as being withdrawn by the applicant voluntarily and unconditionally.
