Case Law Details
In re Surat Municipal Corporation (SMC) (GST AAAR Gujarat)
As per Section 95 of the CGST Act, 2017, the term Advance Ruling means a decision provided by the authority or appellate authority to an applicant on matters or questions specified in subsection 2 of Section 97 or subsection 1 of Section 100, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant. From the submission of appellant it is amply clear that the service i.e. “Design and Comprehensive Consultancy” is to be provided by M/s INI Design Studio Pvt Ltd to the Appellant. In view of above, we find that appellant is the recipient of service in the subject case.
The appellant in its submission to Gujarat Appellate Authority of Advance Ruling has submitted that it has sought the ruling in relation to the supply of services being undertaken or proposed to be undertaken by them but it was for “inward supply”. It is nowhere mentioned that it should be for Outward supply only. We find that the appellant has mainly stressed on the definition of “applicant” given under Section 95(c) of the CGST Act, 2017, according to which “applicant” means any person registered or desirous of obtaining registration under this Act”. The appellant has failed to understand that the person who makes an application before the advance ruling authority or the appellate authority should be a person who is registered or desirous of obtaining registration under the CGST Act, 2017.
The impugned transaction are not in relation to the supply of goods or services or both undertaken or proposed to be undertaken by the appellant and therefore, we are of the view, that it is outside the purview of mandate given to the Advance Ruling Authority/ Appellate Authority on Advance Ruling. The provisions of Section 103 states that the ruling pronounced is binding only on the applicant. It is amply clears that if a recipient of supply obtains a ruling on the taxability of his inward supply of goods or services or both, the supplier of such goods or services or both is not bound by that ruling and he is free to assess the supply according to his own determination/understanding of law and hence ruling loses its relevance and applicability. Any provision of law has to be interpreted in a constructive and harmonious way keeping in mind the object of the purpose of the provision. Any interpretation, if it defeats the vary purpose of the provision of law is not only incorrect but also improper and bad in law.
The present appeal is non-maintainable as per the provisions of CGST Act. In view of the foregoing, we confirm the Advance Ruling Admission Order No. GUJ/GAAR/ADN/2020/120 dated 30.12.2020 of the Gujarat Authority for Advance Ruling in the case of M/s. Surat Municipal Corporation.
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