Advance Ruling— Section 98 of CGST Act— In the instant case, the applicant submits that he intends to purchase an independent self-sustained unit of Cosmic Ferro Alloys Limited who being the seller for the instant case, is engaged in manufacturing of ferro alloys and Cold Rolled Formed Sections having its factories at Barjora (FERRO Unit) and Singur (CRF Unit) respectively. 

The entire operations of the Seller are segmented in the said two units i.e. FERRO Unit and CRF Unit and both the units are functional and running independently.

The proposed transaction is for sale of CRF unit owned by the Seller as a going concern, as a whole which involves transferring of all assets to the purchaser i.e., the applicant and also taking over all the liabilities due and payable as on date of transfer by the purchaser for a lump sum consideration. 

Question raised for advance ruling is as follows—

Whether the transaction would amount as supply of goods or supply of services or supply of goods and services?

Whether the transaction would be covered under Entry No 2 of the Notification No.12/2017- Central Tax Rate dated 28.06.2017?

Held that— In the instant case, the questions on which the applicant seeks advance ruling are not in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant rather it is found to be in relation to supply being received by him.

This authority cannot provide a decision to the applicant in the form of an advance ruling and the instant application is, therefore, liable for rejection.