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No ruling on question which is already pending in any other proceeding under the GST: AAR of West Bengal

Fact: M/s. Ashok Rubber Industries (“the applicant”) is a manufacturer of rice polisher made of flexible and elastic rubber filed an application on November 22, 2018 before the Authority for Advance Ruling for seeking a ruling on classification of the goods.

Issue Involved: Seeking an advance ruling forclassification of the goods. Applicant’s Contention of law: The Applicant submits that the question raised in the application has neither been decided by nor is pending before any authority under any provisions of the GST Act. The concerned officer raises no objection to the admission of the application. Further, the applicant insisted that the application should be admitted, as no show cause notice had yet been issued or received in connection with the above investigation proceedings.

Held: The Hon’ble AAR of West Bengal vide its order no. 26/WBAAR/2018-19 dated December 21, 2018 stated with reference to first proviso to section 98(2) of the CGST Act, 2017 which prohibits the Authority from admitting any application where the question raised is already pending or decided in any proceedings in the case of the applicant under any provisions of the GST Act. It does not distinguish between stages or nature of the proceedings. Any action lawfully taken under any provisions of the GST Act is, therefore, to be construed as proceedings under the Act.

Therefore, it appears from the records that the application was filed online on November 22, 2018, whereas the above Central Authority submits that the proceedings under section 71 of the CGST Act, 2017 had been initiated on July 31, 2018. Hence, it is amply clear that proceedings under the GST Act were pending against the applicant on the date of hearing concerning the same question on which it was seeking advance ruling. Therefore, authority rejected the application.


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