Advance Ruling— In the instant case, the applicant (M/s. Srico Projects Private Limited) isworks contract executing civil works for Central Government Employees Welfare Housing Organization (CGEWHO) and have applied for advance ruling in order to obtain clarification regarding rate of tax on works executed for the Government.

Question raised for advance ruling are as follows—

1. Whether CGEWHO is covered under the definition of the term “Government Entity” as per Notification No.11/2017 & 31/2017?

2. IF CGEWHO falls under the definition of Government Entity, then kindly also clarify whether the tax rate of 12% (CGST@6% + SGST@6%) is applicable to the contract entered into by the applicant with CGEWHO, in pursuance of Notification No.11/2017 –Central tax rate F.No.354/117/2017 – TRU dated 28th June, 2017 and amended Notification No.24/2017 – Central Tax (Rate) dated 21st September’ 2017 read with Notification No.31/2017 – Central Tax (Rate) dated 13th October 2017?

It is observed by the members of the authority that DGGI, Hyderabad Zonal Division has initiated an enquiry into the business activities of the applicant and also issued a notice to them on 15-12-2021 and therefore their case falls under the first proviso to Sec 98(2) of the CGST Act, 2017 wherein their application is liable to be rejected as the question raised by them in the application is pending or decided in such proceedings before the DGGI.

In the present case as the DGGI, Hyderabad has even issued a notice for payment of tax before the above hearing was held for disposal of the question raised before AAR. Merely because the application before the AAR was filed earlier to the investigation initiated by DGGI they will not be immune from any inquiry.

Held that—  As the proceedings are pending under Chapter-XIV of the CGST Act, 2017 regarding the question raised by the applicant, their application stands rejected.