Advance Ruling cannot be misused when GST DRC-01A has already been issued, even prior to filing of Advance Ruling application.
Authority for Advance Ruling —– Mis declaration in AAR Application --– The applicant M/s Shalby Limited, vide Application had sought Advance Ruling. The Authority for Advance Ruling thereafter pronounced the Ruling vide Ruling Order No. GUJ/GAAR/R/11/2021 dated 20-01-2021 in terms of Section 98(4) of Act, 2017. This Authority has received a letter dated 6-3-21 issued by the Additional Commissioner of State Tax (Enforcement), Gujarat, which says that proceeding of Access to business premises under Section 71 was initiated on 4-6-19, which was converted into search proceedings and continued till 6-6-19. The applicant had sought advance ruling on 2-12-2020 before the Advance Ruling Authority and Advance Ruling Authority had pronounced the Ruling on 20.01.2021. Therefore, the proceeding is already pending in the given case before application is filed with Authority of Advance Ruling. The authority observed that the applicant was aware of the investigation initiated, yet it chose not to declare the same in the Advance Ruling Application dated 2-12-20 and mis-declared the same. Moreover, the Revenue did not bring this misdeclaration by the applicant before the Authority prior to issuance of Ruling dated 20-1-21.
Held that:- The Hon’ble Authority for Advance Ruling declared that Advance Ruling No. GUJ/GAAR/R/11/202 dated 20-01-21 void ab-initio in terms of Section 104 of CGST Act.
Advance Ruling cannot be misused when GST DRC-01A has already been issued, even prior to filing of Advance Ruling application.
Authority for Advance Ruling —– Mis declaration in AAR Application --– The applicant M/s Shalby Limited, vide Application had sought Advance Ruling. The Authority for Advance Ruling thereafter pronounced the Ruling vide Ruling Order No. GUJ/GAAR/R/11/2021 dated 20-01-2021 in terms of Section 98(4) of Act, 2017. This Authority has received a letter dated 6-3-21 issued by the Additional Commissioner of State Tax (Enforcement), Gujarat, which says that proceeding of Access to business premises under Section 71 was initiated on 4-6-19, which was converted into search proceedings and continued till 6-6-19. The applicant had sought advance ruling on 2-12-2020 before the Advance Ruling Authority and Advance Ruling Authority had pronounced the Ruling on 20.01.2021. Therefore, the proceeding is already pending in the given case before application is filed with Authority of Advance Ruling. The authority observed that the applicant was aware of the investigation initiated, yet it chose not to declare the same in the Advance Ruling Application dated 2-12-20 and mis-declared the same. Moreover, the Revenue did not bring this misdeclaration by the applicant before the Authority prior to issuance of Ruling dated 20-1-21.
Held that:- The Hon’ble Authority for Advance Ruling declared that Advance Ruling No. GUJ/GAAR/R/11/202 dated 20-01-21 void ab-initio in terms of Section 104 of CGST Act.