Page 113 - GSTL_ 28th May 2020_Vol 36_Part 4

2020 ] IN RE : NAMAKKAL AGRICULTURAL PRODUCERS CO-OPERATIVE MARKETING 559
that statements were recorded by the Central Tax authorities. However, they re-
quested to issue a ruling on merit.
4.2 The Central Jurisdictional authority vide their Letter C. No.
IV/16/08/2018, dated 12-12-2019 submitted that investigations are being taken
on the applicant by the headquarters preventive unit and statements have been
recorded from the authorised signatories of the above societies under Section 70
of CGST Act, 2017 on 20-9-2019.
4.3 Since, the details specified in the above letter didn’t evince the de-
tailed particulars of investigation, a letter dated 28-1-2020 was addressed to the
Commissioner, Salem Commissionerate requesting to clarify whether the inves-
tigations undertaken by them are on the issues raised in the ARA application. In
response to the above, the Central Jurisdictional authority vide Letter C. No.
IV/06/95/2019-HPU, dated 27-2-2020 submitted that investigation is being un-
dertaken by them on the following issues mentioned by the applicant in their
ARA application :
(1) Purchase/Sale involved in the process of auction of agricultural
produce (cotton);
(2) Society is liable to pay tax under Reverse Charge Mechanism;
(3) Tax payable on commission, godown rent, interest in respect of ser-
vice provided to agricultural producers; and
(4) The merchants (Registered person) who directly purchase cotton
from the society which is liable to tax
5.1 We have carefully examined the submissions of the applicant and
the comments furnished by the State/Central Jurisdictional Officer. The appli-
cant has filed this application seeking advance ruling on the following questions :
(1) Whether there is any purchase/sale involved in the process of auc-
tion of agricultural produce (cotton) conducted by the Namakkal
Agricultural Producers Co-operative Marketing Society?
(2) Whether our Society is liable to pay tax under Reverse Charge
Mechanism in the capacity of being an auctioneer?
(3) Whether service tax payable on receipt of commission, godown
rent, interest, in respect of service provided to agricultural [produ-
cer]?
(4) Whether or not the merchants (Registered person) who directly
purchase cotton from the agriculturist through auction conducted
by the society is liable to pay tax on the basis of Reverse Charge
Mechanism?
5.2 It is seen from the comments furnished by Central Tax Officer vide
letters dated 12-12-2019 & 27-2-2020, that proceedings have been initiated in re-
spect of the applicant on the issues raised by them before this authority and
statements have been recorded as per Section 70 of CGST Act, 2017 on 20-9-2019.
We find that the application is filed on 1-10-2019 i.e. when the proceedings initi-
ated under the provisions of the GST Act are pending.
5.3 Section 98(2) of the GST Act, 2017, states as follows :
(2) The Authority may, after examining the application and the rec-
ords called for and after hearing the applicant or his authorised representa-
tive and the concerned officer or his authorised representative, by order, ei-
ther admit or reject the application :
GST LAW TIMES  28th May 2020  113