Page 39 - GSTL_13th August 2020_Vol 39_Part 2

2020 ] REMEDY AGAINST ORDERS OF APPELLATE AUTHORITY FOR ADVANCE RULING J47
226 of the Constitution, which are es-
sentially proceedings to seek judicial
review, into an appellate proceeding.

C.M.S. Info Systems Ltd. The Court, without going into the mer-
(W.P. No. 5801 of 2019) its of the case, held that the decision-
[2019 (28) G.S.T.L. 27 making process had not been complied
(Bom.)] with by the AAAR. Thus, the matter
was remanded back to the AAAR for
fresh consideration on merits and in
accordance with the law.
Columbia Sportswear Co. v. The Supreme Court held that the bind-
DIT [2012 (283) E.L.T. 321 ing nature of advance ruling would not
(S.C.)] affect the jurisdiction of the Supreme
Court under Article 136 of the Consti-
tution or of the High Court under Arti-
cles 226 and 227 of the Constitution.

 In Columbia Sportswear Co. v. DIT [2012 (283) E.L.T. 321 (S.C.)], the
highest judicial Court under the Constitution of India has clearly
held that although the ruling of AAR/AAAR may be binding on
both the parties to the ruling, but the same cannot affect the jurisdic-
tion of Supreme Court under Articles 136 and 32 and High Court
under Articles 226 and 227 because these articles of the Constitution
are constitutional provisions vesting jurisdiction of Supreme Court
and High Court.
 However, it is crucial to note that these remedies are only available
if there is flaw in the decision-making process of the Authority, oth-
erwise order passed by AAAR cannot be challenged on the substan-
tive merits.
Future course of action
The taxpayers are at their discretion to file an application for Advance
Ruling but the legal consequences of the same, i.e., the binding nature of the rul-
ing and no relief available against the Ruling on the basis of the substantive mer-
its, should be kept in mind.
In this era where advance rulings come from various Bench with con-
flicting interpretation of law, caution must be exercised before filling application
as it may lead to unwanted litigation or that the compliance of the ruling results
in hardship for the taxpayers.
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GST LAW TIMES  13th August 2020  39