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Applicant is liable to pay GST on the amount of contribution received from its members.

Levy of GST — The present appeal has been filed against the advance Ruling No. KAR/ADRG 47/2019 Dated: 17 sept 2019.

In view of the above appellant pleaded to hold that the amount of contributions received by the appellant from its members is not taxable or in the alternative, to hold that such amount of contributions as are in excess of Rs. 7500 per month per member alone are taxable.

The Appellant has also contended that the ruling pronounced by the Authority after the mandated period of 90 days is unsustainable in law. No doubt the ruling given by the Authority has been passed after the time period stipulated under the statute. However, that does not render the ruling null and void or unsustainable. An order which is passed without jurisdiction can be held to be null and void and unsustainable. However, an order suffering from illegality or irregularity of procedure cannot be termed in executable. The remedy of a person aggrieved by such an order is to have it set aside in duly constituted legal proceedings or by a superior court failing which he must obey the order. An order passed by a court of competent jurisdiction cannot be denuded of its efficacy by any collateral attack or in incidental proceedings. The Supreme Court decision relied on by the Appellant to submit that the ruling passed by the Authority is not sustainable is not applicable to this case. In the said decision, the Apex Court was examining the actions to be performed by a tenant under the Rent Control Act before filing a petition before the Rent Controller and in that context the Hon’ble Supreme Court held that “if a thing is prescribed to be done within a particular period, it shall be done within that period or shall not be done at all.” In this case, the Authority was well within its jurisdiction to pass a ruling on the subject matter. Not adhering to the time limit in passing an order can be termed as an irregularity in procedure which can be set right in appeal proceedings.

We find that the ruling given by the Authority is correct in law and we do not find reason to interfere with the same. — Vaishnavi Splendour Home Owners Welfare Association, In Re…. [2020] 21 TAXLOK.COM 009 (AAAR-Karnataka)

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