Case Law Details
In re Paryag Trade Links (Sumit Babbar) (GST AAR Punjab)
1. Background: The Advance Ruling Authority in Punjab rejected the application submitted by Paryag Trade Links due to non-compliance with the prescribed format and fee requirements. The applicant, a Works Contractor, sought clarification on the type of GST to be charged in a repair work contract with a company not registered in Punjab.
2. Proceedings: Paryag Trade Links submitted an application for advance ruling but failed to adhere to the prescribed format (ARA-01) and neglected to submit the required fee of Rs. 10,000 (Rs. 5,000 each for CGST and SGST). Notices were issued on 31.03.2022 and 27.09.2022, instructing the applicant to rectify the deficiencies by submitting the application in the proper format and depositing the required fee. Despite multiple opportunities, the applicant did not fulfill the necessary requirements.
3. Rejection Basis: The rejection was based on the applicant’s failure to submit the application in the prescribed format (ARA-01) and non-payment of the requisite fee. The regulations stipulate a fee of Rs. 10,000 for filing an Advance Ruling application, with Rs. 5,000 allocated for both CGST and SGST. As the applicant did not rectify the deficiencies within the given opportunities, the application was rejected.
4. Note on Applicable Acts: The ruling emphasized that the provisions of the CGST Act, 2017, and PGST Act, 2017, are nearly identical. Specific reference to dissimilar provisions in the two acts is highlighted, and a reference to provisions in one act implies a reference to the corresponding provisions in the other act.
5. Conclusion and Implications: This case highlights the significance of adhering to the prescribed format and fee requirements when submitting an Advance Ruling application. Failure to comply with these procedural guidelines can lead to the rejection of the application without addressing the substantive questions raised by the applicant. Future applicants should take note and ensure full compliance to facilitate a comprehensive evaluation of their queries by the Advance Ruling Authority.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, PUNJAB
1. M/s PARYAG TRADE LINKS, PRAYAG COMPLEX, TEACHER COLONY TO PHASE 4/5 ROAD, BATHINDA-151001 as detailed in the table above and hereinafter referred to as ‘applicant’, had submitted an application for advance ruling in form GST ARA-01 dated 07.11.2020 seeking Advance Ruling on the questions detailed in the table above.
2. Proceedings Under Section 98 of CGST/PGST Act:
The applicant has not submitted his application in prescribed format for Advance Ruling I.e. (ARA-01). Also he has not submitted the required fee i.e. Rs.10,000 (5000/- under CGST, Act and 5000/- under PGST, Act). In this regard notice dated 31.03.2022 & 27.09.2022 were issued directing the applicant to file the application in prescribed format along with requisite fee of Rs. 10,000/- (5,000 each for SGST and CGST) as prescribed under the act. Despite giving couple of opportunities applicant has neither submitted application in proper format nor deposited the requisite fee.
3. QUESTION(S) ON WHICH ADVANCE RULING IS SOUGHT:
The applicant is a Works Contractor and has entered into a contract (sub contract) of repair work with M/s Bridge & Roof Co. (I) Ltd, Calcutta on the site of HMEL refinery Bathinda. M/s Bridge & Roof Co. (I) Ltd, Calcutta do not have GST registration in Punjab.
1. What type of GST (IGSI or CGST/SGST) has to be charged on the supplies made by applicant to M/s Bridge & Roof Co. (I) Ltd, Calcutta?
4. DISCUSSIONS AND FINDINGS:
The requisite fee for filling Advance Ruling application is Rs. 10,000/-(Rs. 5,000 each for CGST and SGST), but the applicant has not deposited the requisite fee. Despite giving multiple opportunities, the applicant has not deposited the required fee of Rs. 10,000 under (Rs.5,000 each for COST and SGST). Thus, the application is hereby filed without any ruling.
Note: The provisions of CGST Act, 2017 and PGST Act, 2017 are almost same except a few provisions. Unless specific reference is made to such dissimilar provisions in the two acts, reference to provisions of CGST Act, 2017 would mean a reference to the same provisions of PGST Act, 2017 and vice versa.
