Madras HC: AAR Application Filed Under VAT Does Not Survive After GST Enactment

The Madras High Court has held that an application filed before the Authority for Advance Rulings (AAR) under the Tamil Nadu Value Added Tax (VAT) Act does not survive after the enactment of the Tamil Nadu Goods and Services Tax (GST) Act, 2018.

M/s.Renatus Procon Private Ltd (petitioner) has challenged the order passed by the AAR for clarification and advance ruling dated 26th April 2019.

The petitioner had approached the court earlier challenging the clarification obtained from the AAR on 2nd September 2015 on the taxability of sand lime bricks. The court has set aside that clarification and directed the AAR to hear the petitioner and pass the appropriate orders within six weeks from receiving a copy of the order.

However, the AAR took up the matter again in 2018 after a lapse of three years. Hence, the petitioner again approached the court, challenging the notice contending that the same is liable to be dropped.

Now, the court allowed the petitioner’s contentions and summarised the view that enacting the Tamilnadu GST Act, 2018, would rule out the scope for the AAR for clarification and ruling under the Tamilnadu VAT Act. Hence, the court stated that the application filed by the petitioner wouldn’t survive, and the petitioner challenged the impugned order basis the same.

The court said that the respondent relied on Section 174 of the Tamilnadu GST Act to take aid from the saving provisions. Also, the court accepted the submissions made by the petitioner and ruled that both the application and the impugned order would survive no longer.

For any clarifications/feedback on the topic, please contact the writer at dvsr.anjaneyulu@clear.in