Page 100 - GSTL_26th March 2020_Vol 34_Part 4

610 GST LAW TIMES [ Vol. 34
15. It becomes clear from the above that the respondent KCMPFL made
an application for advance ruling on 20th March, 2019 all the while being aware
of the investigation being conducted against them by the DGGI, Bangalore. The
respondent KCMPFL chose to keep this fact away from the Authority for Ad-
vance Ruling at the time of filing the application. The application for advance
ruling could not have been made in this case as it is hit by the provisions of Sec-
tion 98(2) of the CGST Act inasmuch as an investigation was already initiated
against them by DGGI on the very same issue that was raised before the Authori-
ty for Advance Ruling. We therefore hold that the order of the lower Authority is
void ab initio as it was vitiated by the provisions of Section 98(2) of the CGST Act.
16. Having held that the order of the lower Authority is void ab initio,
the question of discussing the issue of classification of the Flavoured Milk does
not arise.
17. In view of the above discussions, we pass the following order :-
ORDER
18. We allow the appeal of the Department for the reasons mentioned
above. The Order No. KAR ADRG 88/2019, dated 26-9-2019 passed by the Au-
thority for Advance Ruling is declared void ab initio as it was vitiated by the pro-
cess of suppression of material facts. We, however, do not intend to give a ruling
on the issue of classification since the matter is pending in a proceeding under
this Act.

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2020 (34) G.S.T.L. 610 (App. A.A.R. - GST - Kar.)
BEFORE THE APPELLATE AUTHORITY FOR ADVANCE RULING
UNDER GST, KARNATAKA
S/Shri D.P. Nagendra Kumar and M.S. Srikar, Members
IN RE : INTERNATIONAL FLOWER AUCTION BANGALORE
LTD.
Order No. KAR/AAAR-12/2019-20, dated 5-2-2020
1
Auction of flowers - Assessee undertaking complete process of auction
of flowers and upon completion of auction receiving sale consideration - Con-
sideration paid by assessee to seller after deducting its commission - Assessee
offering dealers sophisticated facilities for online buying-remote buying to
attract an increasing number of international buyers to auction - Wide gamut
of activities of assessee beyond scope of a commission agent since services
rendered by it not restricted only to sale of goods on behalf of sellers for con-
sideration, which was main edifice of definition of commission agent -
Assessee’s activities more appropriately classifiable as ‘Auctioneer service’ -
Activity not covered by Serial No. 54(g) of Notification No. 12/2017-C.T. (Rate)
as “services provided by a commission agent for sale or purchase of agricultur-
al produce” even though its covered under Section 2(5) of Central Goods and
Services Tax Act, 2017 as agent - Assessee not eligible for exemption under
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1 On appeal from 2019 (30) G.S.T.L. 366 (A.A.R. - GST).
GST LAW TIMES  26th March 2020  196