Case Law Details
In re MVR Constructions (GST AAR Telangana)
M/s MVR 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 clarity on the applicable tax rate under Serial No. 3(x) of Notification No. 11/2017-C.T(R) dated June 28, 2017. The application aimed to determine whether the given tax rate applied to their supplies. However, before the Authority for Advance Ruling (AAR) could issue a decision, the company requested to withdraw its application.
In a letter dated October 21, 2024, the applicant sought permission to voluntarily withdraw the advance ruling application originally filed on May 1, 2024. The AAR, without examining the merits or the specific facts of the case, allowed the withdrawal unconditionally. Consequently, the application was officially disposed of under Section 98 of the CGST and TGST Acts.
Similar instances of withdrawal have occurred in previous judicial precedents. In Re: Tathagat Health Care (2021), the applicant was permitted to withdraw their advance ruling request before any decision was made. Likewise, in Dhanapal Logistics Pvt. Ltd., In re (2022), the Karnataka AAR allowed an applicant to withdraw its request without addressing the substantive issue. These cases reflect the established practice of allowing voluntary withdrawals in advance ruling matters when requested before a ruling is issued.
With the disposal of MVR Constructions’ application, no ruling was provided on the applicability of the tax rate under the referenced notification. While businesses often seek advance rulings for tax certainty, the ability to withdraw applications allows flexibility in case of strategic or legal reconsiderations. However, such withdrawals leave the underlying tax questions unresolved, requiring businesses to seek clarity through other means.
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 MVR Constructions, the applicant, seeking an advance ruling in respect of the following questions:
1. Whether the rate given under Sr. No.3(x) of Notification number 11/2017-C.T(R) dated 28-06-2017 as amended, applies to the supplies made by the applicant or not?.
The applicant requested through a letter dated 21-10-2024 that they wants to withdraw the Advance Ruling Application filed by us, may be allowed to voluntarily withdraw their application filed on 01-05-2024.
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 MVR Constructions, dated 01-05-2024 in GST ARA Form No. 01 is disposed off, as being withdrawn by the applicant voluntarily and unconditionally.
