Chapter 5 Demand and Recovery, Advance Ruling, Appeals and Revision – CS Professional Advance Tax Law Notes is designed strictly as per the latest syllabus and exam pattern.
Demand and Recovery, Advance Ruling, Appeals and Revision – CS Professional Advance Tax Law Study Material
Question 1.
State with reasons, whether the following statements are true or false under GST law:
(i) Rectification of Advance Ruling must be made within 3 months of the date of order.
(iv) A person aggrieved by the order passed by the adjudicating authority must file appeal to the appellate authority within 30 days from the date of the impugned order. (Dec 2019, 1 mark each)
Answer:
(i) False. As per Section 102 of the CGST Act, 2017, the Authority or the Appellate Authority may amend any order passed by it, so as to rectify any error apparent on the face of the record, within a period of six months from the date of the order.
(iv) False. As per Section 107 of the CGST Act, a person aggrieved by the order of the adjudicating authority must file appeal before the appellate authority within the time limit of 3 months from the date on which the said decision or order is communicated to such person.
Question 2.
Bharghav Pesticides Ltd., a domestic company, intends to start a business in Kolkata, involving supply of certain goods, mostly meant for foreign buyers in China. There is some difficulty in the classification of the goods. Can the company seek advance ruling from the Authority for Advance Ruling formed under CGST Act, 2017 in respect of the issue of classification of goods? Can the company also seek ruling on issues involving place of supply? (June 20185 marks)
Answer:
Advance Ruling
Advance ruling under GST can be sought by a registered person or a person desirous of obtaining registration under GST law [Section 95(c) of the CGST Act, 2017]. Therefore, it is not mandatory for a person seeking advance ruling from the AAR formed under CGST Act, 2017 to be a registered person.
Section 97(2) of the CGST Act, 2017 enjoins that the questions / matters on which the advance ruling can be sought for determining the classification of any goods or services or both. Therefore, the Company can seek the advance ruling for determining the classification of goods proposed to be supplied.
Determination of place of supply is not one of the specified questions./ matters on which advance ruling can be sought under Section 97(2). Further, Section 96 of the CGST Act, 2017 provides that AAR constituted under the provisions of a SGST / UTGST Act, shall be deemed to be the AAR in respect of that State / Union territory.
Thus, AAR is constituted under the respective State / Union Territory Act and not under the Central Act. This implies that ruling given by AAR will be applicable only within the jurisdiction of the concerned State / Union territory. It is also for this reason that the question on determination of place of supply can not be raised with the AAR. Hence, the applicant cannot seek the advance ruling for determining the place of supply of the goods proposed to be supplied by the applicant.
Question 3.
Hema Lubricants Ltd., filed an appeal before the Appellate Tribunal against the order of the Appellate Authority, wherein the issue was revolving around the place of supply. The Tribunal decided the issue against the company and in favour of the department. The company is of the firm opinion that its view is correct and hence there is need to take the issue to an appellate forum higher than the Appellate Tribunal. As the Company Secretary, dealing with indirect tax matters, advise the company about filing of appeal before the appropriate forum. (June 2018, 5 marks)
Answer:
Where the supplier or department is not satisfied with the order passed by the State Bench or Area Benches of the Appellate Tribunal, appeal can be filed before the High Court if the High Court is satisfied that such an appeal involves a substantial question of law [Section 117 (1)] of the CGST Act, 2017],
Nevertheless, appeal against orders passed by the National Bench or Regional Benches of the Tribunal can be filed only before the Supreme Court and not before High Court.
As per Section 109(5) of the Act, only the National Bench or Regional Bench of the Tribunal can decide appeals where one of the issues involved relates to the place of supply. Since the issue involved in the given case relates to the place of supply, the appeal in case would have been decided by the National Bench or Regional Bench of the Tribunal. Consequently, Hema Lubricants Ltd., will have to file an appeal before the Supreme Court and not with the High Court.
Question 4.
State the matters on which Advance Ruling can be sought under GST Law. State any four such matters as specified under the CGST Act, 2017. (June 2019, 4 marks)
Answer:
U/s 97(2) of the CGST Act, 2017 Advance Ruling can be sought for the following questions/matters/issues:
- Classification of any goods or services or both;
- Applicability of a notification issued under the provisions of this Act;
- Determination of time and value of supply of goods or services or both;
- Admissibility of Input Tax Credit of tax paid or deemed to have been paid;
- Determination of tax liability to pay tax on any goods or services or both;
- Clarification on registration requirements of the applicant;
- Whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term.
Question 5.
A show cause notice (SCN) indicating various discrepancies was issued by the proper officer to a registered person. However, the registered person despite opportunity given, failed to give satisfactory explanation and reply relating to the shortcomings indicated in the SCN.
In this backdrop, state as per provisions of the CGST Act, 2017 what actions now against the registered person may be taken by the proper officer? (Dec 2020, 5 marks)
Answer:
Section 61 of the CGST Act, 2017: Scrutiny of Return:
The registered person is required to give satisfactory reply in respect of the shortcomings or the discrepancies brought to his notice by the proper officer within a period of thirty days or such further period as may be permitted by the proper officer.
In case, after accepting the discrepancies, no satisfactory explanation is furnished then the proper officer may;
(a) Initiate Audit of accounts of the registered person by the tax authorities under section 65, or
(b) Initiate special audit of accounts under section 66, or
(c) Initiate inspection, search and seizure under section 67, or
(d) Proceed to determine the tax and other dues against the registered person under section 73 or section 74 of the CGST Act, 2017.
Question 6.
Explain the recourse that may be taken by the officer in case proper explanation is not furnished for the discrepancy detected in the return filled, while conducting scrutiny of returns under section 61 of the CGST Act, 2017. (June 2022, 4 marks)
Answer:
If proper explanation is not furnished for the discrepancy detected in the return filled, while conducting scrutiny of returns under section 61 of the Central Goods and Services Tax Act, 2017 of a registered person, the proper officer may:
1. Conduct audit of the registered person under section 65 of the Central Goods and Services Tax Act, 2017; or
2. Direct the registered person to get his records including books of account examined and audited by a Chartered Accountant or a Cost Accountant nominated for this purpose by the Commissioner under section 66 of the Central Goods and Services Tax Act, 2017; or
3. Exercise the powers of inspection, search and seizure with respect to the registered person under section 67 of the Central Goods and Services Tax Act, 2017; or
4. Proceed to determine the tax and other dues of the registered person under section 73 or 74 of the Act.
Question 7.
What are the matters on which advance ruling can be sought under GST law? (Dec 2022, 5 marks)
Question 8.
XY Company received an adjudication order passed by the Assistant Commissioner of Central Tax on 2nd December, 2021 under section 73 of the CGST Act, 2017 wherein it was decided as follows:
IGST due : ₹ 7,00,000
Interest : ₹ 25,000
Penalty : ₹ 50,000
XY Company filed an appeal before the Appellate Authority on 28th January 2022. How much the company has to pay as pre-deposit under section 107 (6) of the CGST Act, 2017 if the assessee appeals against part of the demanded amount say Tax ₹ 4,00,000 interest ₹ 15,000 and penalty ₹ 30,000 and admits the balance liability of tax, interest and penalty? (June 2019, 5 marks)
Answer:
Section 107(6) of the CGST Act, 2017 provides that no appeal shall be filed before Appellate Authority, unless the appellant pays:
(a) in full, such part of the amount of tax, interest, fine, fee and penalty arising from impugned order, as is admitted by him; and
(b) 10% of remaining tax in dispute arising from impugned order subject to a maximum of twenty-five crore rupees.
Thus, since XY Company admits the tax liability of ₹ 3,00,000 + Interest ₹ 10,000 and Penalty ₹ 20,000 it has to make a pre-deposit of:
- ₹ 3,30,000 (i.e. 3,00,000 + 10,000 + 20,000)
- ₹ 40,000 (i.e. 10% of 4,00,000) Total ₹ 3,70,000.
Question 9.
Green & Green Private Limited has been issued a show cause notice (SCN) on 15th March, 2022 under Section 73 (1) of the CGST Act, 2017 on account of short payment of tax for the month of April, 2021. Green & Green Private Limited contends that the show cause notice so issued is time-barred in law.
You are required to examine the technical veracity of the contention of Green & Green Private Limited in the context of provisions of the CGST Act, 2017. (June 2019, 4 marks)
Answer:
The show cause notice (SCN) under Section 73(1) of the CGST Act, 2017 shall be issued at least 3 months prior to the time limit specified for issuance of order under Section 73(10) and adjudication order under Section 73(10) has to be issued within 3 years from the due date for furnishing of annual return for the financial year to which the short-paid/not paid tax relates to.
Thus, SCN under section 73(1) of the CGST Act, 2017 can be issued within 2 years and 9 months from the due date for furnishing of annual return for the financial year to which the short-paid/not paid tax relates to.
The SCN has been issued for the period April, 2021 which falls in the financial year 2021-22. Due date for furnishing annual return for the F.Y. 2021 -22 is 31.12.2022 and 3 year’s period from the due date of filing annual return lapses on 31.12.2025.
Thus, SCN under Section 73(1) ought to have been issued latest by 30.09.2025, which in the given case, the notice has been issued on 15.03.2022, and therefore the same is in time. The contention of Green and Green Private Limited that the SCN is time barred is wrong.
Question 10.
Ram Bharose, intends to start business of supply and selling, of the specified goods in Delhi as proprietor. However, he is not able to determine because of the complexity of the provisions of the CGST Act, 2017 as to:
(i) the classification of the goods proposed to be supplied by him [as the classification of said goods has been contentious]; and
(ii) the place of supply as the supplies of the said goods is to be made from Delhi to buyer located in New York.
He therefore approached his tax advisor, who advised him to get first registered under the CGST Act and thereafter apply for the advance ruling in respect of these issues as the advance ruling would bring certainty and transparency and would also avoid litigation later.
In this backdrop and the information given, you are required to advise Ram Bharose with respect to the following:
(i) Whether he needs to get himself registered first under GST law before applying for the advance ruling? (Dec 2020, 2 marks)
(ii) Can advance ruling be obtained to determine
(a) the classification of the goods proposed to be supplied;
(b) the place of supply, where the supplies of said goods is from Delhi to buyers in New York? (Dec 2020, 3 marks)
Answer:
(i) Registration not mandatory for Advance Ruling: As per section 95(c) of the CGST Act, 2017, Advance ruling under GST can be sought by a registered person or by a person desirous of obtaining registration under GST law.
Therefore, it is not mandatory for Ram Bharose to be registered first before making an application for advance ruling. The advise given by the tax advisor is therefore not correct.
(ii) (a) Classification issue can be raised: Section 97(2) of the CGST Act, 2017 stipulates the questions/matters on which advance ruling can be sought. It provides that advance ruling can be sought inter alia for determining the classification of any goods or services or both.
Therefore, Ram Bharose can seek the advance ruling for determining the classification of the goods proposed to be supplied by him.
(b) Place of supply issue cannot be raised: Determination of place of supply is not one of the specified questions/matters on which advance ruling can be sought under section 97(2).
Further, section 96 of the CGST Act, 2017 provides that AAR constituted under the provisions of SGST Act/ UTGST Act shall be deemed to be the AAR in respect of that State/ Union territory under CGST Act. This implies that ruling given by AAR will be applicable only within the jurisdiction of the concerned State/ Union territory.
Hence, Ram Bharose cannot seek the advance ruling for determining the place of supply of the goods proposed to be supplied from Delhi to buyers in New York.
However in the case of Sutherland Mortgage Services INC Vs Principal Commissioner (Kerala High Court), it was held that Authority for Advance Ruling (AAR) has jurisdiction to determine Place of Supply under GST.
Question 11.
Mention the due date/maximum time allowed for the following:
(i) Issue of orders u/s 74(10) of the CGST Act, 2017.
(ii) Withdrawal period for application for advance ruling under Customs Act, 1962.
(iii) Period of punishment for tempering of records by a dealer.
(iv) Time of supply of goods when :
- A supplied goods to S on 15th March, 2021 for ₹ 11,800 taxable @ 18% GST.
- GST rate reduced to 12% on 20th March, 2021.
- S made payment to A on 25th March, 2021. (Aug 2021, 4 marks)
Answer:
(i) The proper officer shall issue the orders under Section 74(10) within a period of five years from the due date of furnishing of annual return for the financial year for which the tax has not been paid or short-paid or input tax wrongly availed or utilized relates to or within 5 years from the date of erroneous refund.
(ii) An application for advance ruling can be withdrawn by the applicant within thirty days from the date of application. If applicant wants to withdraw after thirty days it can be withdrawn after obtaining permission of the Appellate Authority according to Section 28H of the Customs Act, 1962.
(iii) As per Section 132(1) of Central Goods and Services Tax Act, 2017, – whoever commits, or causes to commit and retain the benefits arising out of the offence of tempering of records shall be punishable with imprisonment for a term which may extend to 6 months or with fine or with both.
(iv) As per Section 12 of the Central Goods and Services Tax Act, 2017, Time of supply is Date of issue of invoice or last date of issue of invoice, whichever is earlier. Further Section 14 of the Central Goods and Services Tax Act, 2017 determines time of supply in case of change in GST rates, but as per Notification no 66/2017, Section 14 will not apply for change in GST rate of goods but Time of supply will be determined under Section 12.
Here, invoice date is 15th March, 2021. Hence, the time of supply is 15,h March, 2021.
Question 12.
Is there any time limit for adjudication the cases?
Answer:
(i) In case of section 73(cases other than fraud/ suppression of facts/willful misstatement), the time limit for adjudication of cases is 3 years from the due date for filing of annual return for the financial year to which demand relates to or the date of erroneous refund/ITC wrongly availed. (sec.73(10))
(ii) In case of section 74(cases of fraud/suppression of facts/willful misstatement), the time limit for adjudication is 5 years from the due date for filing of annual return for the financial year to which demand relates to or the date of erroneous refund/ITC wrongly availed. (sec.74(10))
Question 13.
What are the modes of recovery of tax available to the proper officer?
Answer:
The proper officer may recover the dues in following manner:
(a) Deduction of dues from the amount owned by the tax authorities payable to such person.
(b) Recovery by way of detaining and selling any goods belonging to such person;
(c) Recovery from other person, from whom money is due or may become due to such person or who holds or may subsequently hold money for or on account of such person, to pay to the credit of the Central or a State Government;
(d) Distrain any movable or immovable property belonging to such person, until the amount payable is paid. If the dues not paid within 30 days, the said property is to be sold and with the proceeds of such sale the amount payable and cost of sale shall be recovered.
(e) Through the Collector of the district in which such person owns any property or resides or carries on his business, as if it was an arrear of land revenue.
(f) By way of an application to the appropriate Magistrate who in turn shall proceed to recover the amount as if it were a fine imposed by him.
(g) Through enforcing the bond /instrument executed under this Act or any rules or regulations made thereunder.
(h) CGST arrears can be recovered as an arrear of SGST and vice-versa. (sec.79(1,2,3,4))
Question 14.
What is the liability of directors of the Company (taxable person) under liquidation?
Answer:
When any private company is wound up and any tax or other dues determined whether before or after liquidation that remains unrecovered, every person who was a director of the company during the period for which the tax was due, shall jointly and severally be liable for payment of dues unless he proves to the satisfaction of the Commissioner that such non-recovery is not attributed to any gross neglect, misfeasance or breach of duties on his part in relation to the affairs of the company. (Sec.88(3),89)
Question 15.
Which are the questions for which advance ruling can be sought?
Answer:
Advance Ruling can be sought for the following questions:
(a) classification of any goods or services or both;
(b) applicability of a notification issued under provisions of the GST Act(s);
(c) determination of time and value of supply of goods or services or both;
(d) admissibility of input tax credit of tax paid or deemed to have been paid;
(e) determination of the liability to pay tax on any goods or services under the Act;
(f) whether applicant is required to be registered under the Act; .
(g) whether any particular thing done by the applicant with respect to any goods or services amounts to or results in a supply of goods or services, within the meaning of that term.
Question 16.
What is the objective of having a mechanism of Advance Ruling?
Answer:
The broad objective for setting up such an authority is to:
- provide certainty in tax liability in advance in relation to an activity proposed to be undertaken by the applicant;
- attract Foreign Direct Investment (FDI);
- reduce litigation;
- pronounce ruling expeditiously in transparent and inexpensive manner.
Question 17.
What will be the composition of Authority for advance rulings (AAR) under GST?
Answer:
‘Authority for advance ruling’ (AAR) shall comprise one member CGST and one member SGST/ UTGST. They will be appointed by the Central and State government respectively.
Question 18.
At what time an application for advance ruling be made?
Answer:
An applicant can apply for advance ruling even before taking up a transaction (proposed supply of goods or services) or in respect of a supply which is being undertaken. The only restriction is that the question being raised is already not pending or decided in any proceedings in the case of applicant.
Question 19.
What is the Appellate authority for advance ruling (AAAR)?
Answer:
Appellate authority for advance ruling (AAAR), shall be constituted under the SGST Act or UTGST Act and such AAAR shall be deemed to be the Appellate Authority under the CGST Act in respect of the respective state or Union Territory. An applicant, or the jurisdictional officer, if aggrieved by any advance ruling, may appeal to the Appellate Authority.
Question 20.
To whom will the Advance Ruling be applicable?
Answer:
Section 103 provides that an advance ruling pronounced by AAR or AAAR shall be binding only on the applicant who sought it in respect of any matter referred to in 97 (2) and on the jurisdictional tax authority of the applicant. This clearly means that an advance ruling is not applicable to similarly placed taxable persons in the State. It is only limited to the person who has applied for an advance ruling.
Question 21.
What is the time period for applicability of Advance Ruling?
Answer:
The law does not provide for a fixed time period for which the ruling shall apply. Instead, in section 103(2), it is provided that advance ruling shall be binding till the period when the law, facts or circumstances supporting the original advance ruling have changed. Thus, a ruling shall continue to be in force so long as the transaction continues and so long as there is no change in law, facts or circumstances.
Question 22.
What is the procedure for obtaining Advance Ruling?
Answer:
Section 97 and 98 deals with procedure for obtaining advance ruling. Section 97 provides that the applicant desirous of obtaining advance ruling should make application to AAR in a prescribed form and manner. The format of the form and the detailed procedure for making application will be prescribed in the Rules.
Section 98 provides the procedure for dealing with the application for advance ruling. The AAR shall send a copy of application to the officer in whose jurisdiction the applicant falls and call for all relevant records. The AAR may then examine the application along with the records and may also hear the applicant. Thereafter AAR will pass an order either admitting or rejecting the application.
Question 23.
Under what circumstances will the application for Advance Ruling be compulsorily rejected?
Answer:
Application has to be rejected if the question raised in the application is already pending or decided in any proceedings in the case of applicant under any of the provisions of GST Act(s)
If the application is rejected, it should be by way of a speaking order giving the reasons for rejection.
Question 24.
What is the procedure to be followed by AAR once the application is admitted?
Answer:
If the application is admitted, the AAR shall pronounce its ruling within ninety days of receipt of application. Before giving its ruling, it shall examine the application and any further material furnished by the applicant or by the concerned departmental officer. Before giving the ruling, AAR must hear the applicant or his authorized representative as well as the jurisdictional officers of CGST/SGST/UTGST.
Question 25.
What are the provisions for appeals against order of AAR?
Answer:
The provisions of appeal before AAAR are dealt in section 100 and 101 of CGST/SGST Act or section 14 of the UTGST Act.
If the applicant is aggrieved with the finding of the AAR, he can file an appeal with AAAR. Similarly, if the concerned or jurisdictional officer of CGST/SGST/UTGST does not agree with the finding of AAR, he can also file an appeal with AAAR. The word concerned officer of CGST/SGST means an officer who has been designated by the CGST/SGST administration in regard to an application for advance ruling. In normal circumstances, the concerned officer will be the officer in whose jurisdiction the applicant is located. In such cases the concerned officer will be the jurisdictional CGST/SGST officer.
Any appeal must be filed within thirty days from the receipt of the advance ruling. The appeal has to be in prescribed form and has to be verified in prescribed manner. This will be prescribed in the Model GST Rules.
The Appellate Authority must pass an order after hearing the parties to the appeal within a period of ninety days of the filing of an appeal. If members of AAAR differ on any point referred to in appeal, it shall be deemed that no advance ruling is issued in respect of the question under appeal.
Question 26.
Whether Appeal can be filed before High Court or Supreme Court against the ruling of Appellate Authority for Advance Rulings?
Answer:
The CGST /SGST Act do not provide for any appeal against the ruling of Appellate Authority for Advance Rulings. Thus no further appeals lie and the ruling shall be binding on the applicant as well as the jurisdictional officer in respect of applicant. However, Writ Jurisdiction may lie before Hon’ble High Court or the Supreme Court.
Question 27.
Can the AAR & AAAR order for rectification of mistakes in the ruling?
Answer:
Yes, AAR and AAAR have power to amend their order to rectify any mistake apparent from the record within a period of six months from the date of the order. Such mistake may be noticed by the authority on its own accord or may be brought to its notice by the applicant or the concerned or the jurisdictional CGST/SGST officer.
If a rectification has the effect of enhancing the tax liability or reducing the quantum of input tax credit, the applicant or the appellant must be heard before the order is passed. (Section 102)
Question 28.
Whether any person aggrieved by any order or decision passed against him has the right to appeal?
Answer:
Yes. Any person aggrieved by any order or decision passed under the GST Act(s) has the right to appeal under Section 107. It must be an order or decision passed by an “adjudicating authority”.
However, some decisions or orders (as provided for in Section 121) are not appealable.
Question 29.
What is the time limit to file appeal to Appellate Authority (AA)?
Answer:
For the aggrieved person, the time limit is fixed as 3 months from the date of communication of order or decision. For the department (Revenue), the time limit is 6 months within which review proceedings have to be completed and appeal filed before the AA
Question 30.
Whether the appellate authority has any powers to condone the delay in filing appeal?
Answer:
Yes. He can condone a delay of up to one month from the end of the prescribed period of 3/6 months for filing the appeal (3+1/6+1), provided there is “sufficient cause” as laid down in the section 107(4).
Question 31.
Can any CGST/SGST authority revise any order passed under the Act by his subordinates?
Answer:
Section 2(99) of the Act defines “Revisional Authority” as an authority appointed or authorised under this Act for revision of decision or orders referred to in section 108. Section 108 of the Act authorizes such “revisional authority” to call for and examine any order passed by his subordinates and in case he considers the order of the lower authority to be erroneous in so far as it is prejudicial to revenue and is illegal or improper or has not taken into account certain material facts, whether available at the time of issuance of the said order or not or in consequence of an observation by the Comptroller and Auditor General of India, he may, if necessary, he can revise the order after giving opportunity of being heard to the noticee.
Question 32.
When the Tribunal is having powers to refuse to admit the appeal?
Answer:
In cases where the appeal involves –
- tax amount or input tax credit or
- the difference in tax or the difference in input tax credit involved or
- amount of fine, fees or amount of penalty determined by such order, does not exceed ₹ 50,000/-, the Tribunal has discretion to refuse to admit such appeal. (Section 112(2) of the Act)
Question 33.
What is the time limit within which appeal has to be filed before the Tribunal?
Answer:
The aggrieved person has to file appeal before Tribunal within 3 months from the date of receipt of the order appealed against. Department has to complete review proceedings and file appeal within a period of six months from the date of passing the order under revision.
Question 34.
What is the time limit for filing memorandum of cross objections before Tribunal?
Answer:
45 days from the date of receipt of appeal.
Question 35.
What is the time limit for filing an appeal before the High Court?
Answer:
180 days from the date of receipt of the order appealed against. However, the High Court has the power to condone further delay on sufficient cause being shown.
Demand and Recovery, Advance Ruling, Appeals and Revision Notes
Sec.74 of the CGST Act, 2017
This section deals with determination of tax and its demand & subsequent recovery in situations resulting into by way of any fraud, wilful misstatement or suppression of facts:
- Taxes not paid;
- Taxes short paid;
- Tax erroneously refunded;
- Input tax credit wrongly availed or utilised
- Recovery of interest payable which is not paid or partly paid or interest erroneously refunded
Mode of Appeal (on a hierarchy)
Supreme Court
↑
High Court
↑
Appellate Tribunal
↑
First Appellate Authority
↑
Proper Officer
Procedural Flow Diagram: Sec.76
Ascertain amount of tax payable along with applicable interest and penalty
↓
Allow opportunity of being heard
↓
Proper officer to issue notice within one year from the date of issue of the notice (excluding time period for stay of order, if any)
↓
Excess amount if any collected from the person may either be credited to the Fund or refunded to the concerned person. The person may apply for refund u/s 54
Sec. 81: Transfer of property to be void in certain cases
Where a person, after any amount has become due from him, creates a charge on or parts with the property belonging to him or in his possession by way of sale, mortgage, exchange, or any other mode of transfer whatsoever of any of his properties in favour of any other person with the intention of defrauding the Government revenue, such charge or transfer shall be void as against any claim in respect of any tax or any other sum payable by the said person:
Provided that, such charge or transfer shall not be void if it is made for adequate consideration, in good faith and without notice of the pendency of such proceedings under this Act or without notice of such tax or other sum payable by the said person, or with the previous permission of the proper officer.
Advance Ruling under GST
Advance ruling is an interpretation of tax laws by tax authorities, given to taxpayers who are confused about various tax laws.
Rectification of Advance Ruling [Sec.102]
Orders issued by the AAR or AAAR may be rectified without making any amendment in its substantial part, only if the mistake is apparently identified from records within 6 months of the date of order.
- For mistake apparent from record.
- Either on own motion or if brought to notice by prescribed/ jurisdictional CGST/ SGST/ UTGST officer or applicant
- Opportunity of being heard if prejudicial to Applicant/ Appellant.