1. Background: The Advance Ruling Authority in Punjab rejected the application submitted by Global Foods due to non-compliance with the prescribed fee requirements. The applicant, engaged in the manufacturing and sale of rice and its allied products, sought clarification on the applicability of benefits under Notification No. 48/2017 for the enhancement or modernization of production capacity.
2. Proceedings: Global Foods submitted an application for advance ruling but only deposited Rs. 5,000 as the fee under SGST, failing to pay the prescribed fee of Rs. 5,000 for CGST. Notices were issued on 28.08.2022 and 27.09.2022, directing the applicant to rectify the deficiency by depositing the required fee for CGST as prescribed under the Act. Despite opportunities provided, the applicant did not submit the pending fee.
3. Rejection Basis: The rejection was based on the applicant’s failure to deposit the complete fee required for filing an Advance Ruling application. The regulations mandate a fee of Rs. 10,000 for such applications, with Rs. 5,000 allocated for both CGST and SGST. As the applicant did not rectify the deficiency within the given opportunities, the application was rejected without addressing the substantive questions raised.
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 underscores the importance of complete and timely fee payment 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 queries posed by the applicant. Future applicants should ensure full compliance to facilitate a comprehensive evaluation of their questions by the Advance Ruling Authority.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, PUNJAB
1. M/s NIDHI SHARMA (ZED ENTERPRISES), OSTIN: 03PMHPSI702P1ZS 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 14.08.2019 seeking Advance Ruling on the questions detailed in the table above.
2. Proceedings Under Section 98 of CGST/PGST Act:
The applicant had deposited only Rs. 5,000/- fee under SGST while filling Advance Ruling Application. In this regard, notices dated 28.08.2022 and 27.09.2022 were issued to the applicant to deposit the requisite fee of Rs. 5,000 for CGST as prescribed under the Act. But the applicant has not deposited the prescribed requisite fee of Rs. 5,000/- under CGST.
3. QUESTION(S) ON WHICH ADVANCE RULING IS SOUGHT:
The applicant is in the business of manufacturing and sale of Rice and its allied products. The tax payer commenced its manufacturing activity in 2017-18 with the capacity of its paddy dryers of 108 MT per day. Thereafter, to meet the market demands and improve the production capacity, tax payer purchased machinery as a deemed supply as notified under S. No. 2 of Notification No. 48/2017 dated 18.10.2017.
1. Whether the benefits and applicability of supply mentioned at S. No. 2 of Notification No. 48/2017 is applicable only where a new unit is installed OR is also applicable when the unit is already running and there is enhancement or modernization of capacity of the unit i.e. the supply at S. No. 2 of Notification No. 48/2017 it is also applicable for expansion of production capacity?
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 deposited only Rs. 5,000/- under SGST Act. Despite giving couple of opportunities, the applicant has not deposited the required pending fee of Rs. 5,000 under CGST Act. Thus, the application is hereby filed without any Advance Ruling.
Note: The provisions of CGST Act, 2017 and PGST Act, 2017 arc 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.