Case Law Details
In re M/s. International Traders (Kirti Arora) (GST AAR Punjab)
1. Overview: M/s International Traders, engaged in the import of dry fruits from Pakistan, sought an advance ruling on the applicable tax rate for the supply of dry dates. However, their application was rejected by the Authority for Advance Ruling (AAR) in Punjab due to non-compliance with prescribed procedures.
2. Proceedings: The applicant did not adhere to the prescribed format (ARA-01) for the advance ruling application and failed to submit the required fee of Rs. 10,000 (Rs. 5,000 each for CGST and SGST). Notices were issued on 25.03.2022 and 27.09.2022, instructing the applicant to rectify the deficiencies by submitting the application in the prescribed format and depositing the requisite fee. Despite multiple opportunities, the applicant did not comply.
3. Questions Raised: The applicant intended to seek clarity on the applicable tax rate for the supply of dry dates imported from Pakistan. However, due to non-compliance, the AAR did not address the substantive question.
4. Rejection Basis: The rejection was based on the applicant’s failure to fulfill the procedural requirements. The regulations stipulate a fee of Rs. 10,000 for advance ruling applications, with Rs. 5,000 allocated for both CGST and SGST. Since the applicant did not rectify the deficiencies within the provided opportunities, the application was rejected without addressing the substantive tax rate query.
5. Note on Applicable Acts: The ruling emphasized the similarity between the provisions of the CGST Act, 2017, and PGST Act, 2017. Specific reference to dissimilar provisions in the two acts was highlighted, with a reminder that references to provisions in one act imply a reference to the corresponding provisions in the other act.
6. Conclusion and Implications: This case serves as a reminder of the importance of compliance with procedural guidelines when submitting an advance ruling application. Non-compliance with the prescribed format and fee requirements can lead to the rejection of the application without addressing the substantive queries raised. Future applicants should ensure adherence to all procedural aspects to facilitate a comprehensive evaluation of their questions by the AAR
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, PUNJAB
1. M/s International Traders, 575/VI-A, International Traders, Majith Mandi, Amritsar-143001 (GST Registration No. 03AANPA6781B1Z2) is engaged in the business of importing dry fruits from Pakistan. The tax payer is importing Dry dates from Pakistan and paying 28% IGST while receiving goods at custom barriers.
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 25.03.2022 t3G 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 SOST and COST) 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:
M/s International Traders, 575/VI-A, International Traders, Majith Mandi, Amritsar-143001 ((1ST Registration No. 03AANPA6781B1Z2) is engaged in the business of importing dry fruits from Pakistan. The tax payer is importing Dry dates from Pakistan and paying 28% IOST while receiving goods at custom barriers.
1. What is applicable rate of tax on supply of dry dates?
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 CGST 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.
