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CA Final · Indirect Tax Laws · Advance Ruling

Kaveri Logistics obtained an advance ruling from the Appellate Authority for Advance Ruling on the applicability of GST to a bundled service. A jurisdictional officer handling the case of Mehta Traders, a different registered person with identical facts, wants to apply the ruling to Mehta Traders. Under section 103(1) of the CGST Act, which statement is correct?

The ruling binds only Kaveri Logistics, the applicant, and the concerned or jurisdictional officer in respect of that applicant. Section 103(1) restricts binding force to the applicant and the officers dealing with it, so Mehta Traders is not bound even with identical facts.

  1. AThe ruling binds Mehta Traders because the facts are identical
  2. BThe ruling binds all registered persons in the same State
  3. CThe ruling binds only Kaveri Logistics and the concerned or jurisdictional officer in respect of Kaveri LogisticsCorrect
  4. DThe ruling binds only the jurisdictional officer but not the applicant

Explanation

Section 103(1) makes the ruling of the Authority or Appellate Authority binding only on the applicant who sought it and on the concerned or jurisdictional officer in respect of that applicant. Mehta Traders is not the applicant, so it is not bound, even though the facts are similar. Extending it to all persons in the State goes beyond the section.

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