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2020 ] REMEDY AGAINST ORDERS OF APPELLATE AUTHORITY FOR ADVANCE RULING J45

REMEDY AGAINST ORDERS OF APPELLATE AUTHORITY FOR ADVANCE RULING
REMEDY AGAINST ORDERS OF APPELLATE AUTHORITY
FOR ADVANCE RULING (AAAR) UNDER GST
REMEDY AGAINST ORDERS OF APPELLATE AUTHORITY FOR ADVANCE RULING
By
Ashish Mittal
GST CONSULTANT
and
CA Vaibhav Rai
TAX CONSULTANT

Brief Background and history
In 1993, post the opening of the Indian economy in 1991, India intro-
duced the scheme of advance rulings in the tax legislation. Advance Ruling
means written opinion or authoritative decision by an Authority empowered to
render it, with regard to the tax consequences of a transaction or proposed trans-
action or an assessment in regard thereto.
Keeping the same in view, this document discusses the relief available
against order passed by Appellate Authority for Advance Ruling (in short
“AAAR”) through a study of Constitution of India and varied judgments.
Understanding the term from GST perspective
Under GST, a legally constituted body called Authority for Advance Rul-
ing (in short “AAR”) can give a binding ruling to an applicant who is a regis-
tered taxable person or is liable to be registered. If the applicant or the jurisdic-
tional officer is aggrieved with the finding of AAR, he can file an appeal with
AAAR. The decision of AAAR is also treated as an advance ruling i.e. order of
AAAR shall enters into shoes of AAR with respect to its legal validity.
Recourse against the order of AAAR on the basis of substantive merits of the case
While a provision is made in the statute for providing remedy in the
form of an appeal against the order of AAR, the statutes in question have not
provided for any further appeal against the decision of the Appellate Authority
in case an applicant or the Jurisdictional Officer is aggrieved by the ruling pro-
nounced by AAAR. Such non-availability of challenging the ruling of AAAR is
quite reasonable on the grounds that the object of the AAR/AAAR is to give clar-
ity on the tax consequences, and the purpose of constituting such authority
would be defeated if its ruling is challenged through various levels in the judicial
system.
The same view was taken in JSW Energy v. UOI of Bombay High Court
[2019 (27) G.S.T.L. 198 (Bom.)], wherein the Hon’ble Court held that, the matter
in dispute would not be examined as the statute do not allow further appeal
against the order of appellate Authority. The verdict is reinstated herewith :
“At the outset, we make it clear that we do not propose to examine the im-
pugned orders on their substantive merits or demerits, merely because stat-
utes in question have not provided for any further appeal against the decision
of the Appellate Authority.”
GST LAW TIMES  13th August 2020  37