Advance ruling obtained by assessee declared void ab initio for suppressing material facts: AAR Telengana

Advance ruling obtained by assessee declared void ab initio for suppressing material facts: AAR Telengana

Observes that the questions were pending before the Directorate General of Goods & Services Tax, Intelligence

The Telangana Bench of the Authority for Advance Rulings (AAR) has ruled that Srico Projects Pvt Ltd (applicant), who obtained an advance ruling, had suppressed material facts. Therefore the ruling was void ab initio under Section 104 of the Central Goods and Services Tax Act/Telangana Goods and Services Tax Act, 2017 (CGST Act/TGST Act).

The two-member bench comprising SV Kasi Visweswara Rao (State Tax) and Sahil Inamdar (Central Tax) stated that as per Section 98(2) of the CGST/TGST Act, the AAR could not admit an application if the question raised was already pending or decided in any proceedings related to the applicant.

The bench observed that the questions were pending in a proceeding before the Directorate General of Goods & Services Tax, Intelligence, Hyderabad zonal unit.

Thus, AAR held, “The order issued in the 5th reference is declared as void ab initio as per Section 104(1) of CGST/TGST Act and thereupon all the provisions of CGST/TGST Act or the rules made thereunder, shall apply to the applicant as if such advance ruling had never been made.”