Case Law Details
In re GMK Constructions (GST AAR Telangana)
M/s GMK Constructions 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 applicability of the tax rate under Serial No. 3(x) of Notification No. 11/2017-CT(R), dated June 28, 2017. The applicant sought to determine whether the given tax rate applied to its supplies. However, before the Authority for Advance Ruling (AAR) could provide a decision, the company requested to withdraw the application.
In a letter dated October 14, 2024, the applicant cited a change in circumstances as the reason for withdrawal. Additionally, it noted that the issues raised in the application were already under consideration before the Hon’ble High Court and appellate authorities. Given this, the AAR accepted the request for voluntary and unconditional withdrawal without examining the merits of the case. The application, initially filed on January 5, 2024, was officially disposed of under Section 98 of the CGST and TGST Acts.
Judicial precedents indicate that withdrawal of advance ruling applications is permitted, particularly when related matters are sub-judice. In Re: Tathagat Health Care (2021) and Dhanapal Logistics Pvt. Ltd., In re (2022), the respective AARs allowed applicants to withdraw their requests without addressing the case details. These cases reaffirm that businesses can withdraw applications when legal proceedings on the same issue are ongoing.
With the withdrawal of GMK Constructions’ application, no ruling was provided on the applicability of the tax rate under the referenced notification. Businesses seeking advance rulings typically do so for tax certainty, but legal proceedings may override such inquiries. The case highlights the importance of considering ongoing litigation before seeking an advance ruling, as parallel proceedings can lead to procedural complexities.
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 GMK Constructions, seeking an advance ruling in respect of the following questions:
1. Whether the rate given under Sr. No. 3(x) of Notification No. 11/2017-CT(R), Dt. 28-06-2017 as amended, applies to the supplies made by the applicant or not? The applicant requested through a letter dated 14-10-2024 that they may be allowed to voluntarily withdraw their subject application filed on 05-01-2024 for following reasons:-
“Due to change in circumstances and also considering the fact that questions raised in the present application are sub-judice before Hon’ble High Court and also appellate authorities.”
Therefore, 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 GMK Constructions, dated 05-01-2024 in GST ARA Form No. 01 is disposed off, as being withdrawn by the applicant voluntarily and unconditionally.
