Advance Authority Ruling — Rate of tax on works contract services rendered to the Central Government Employees Welfare Housing Organisation -- The Petitioner sought quashing of order dated 03.06.2022 passed by State Authority for Advance Ruling. The petitioner submitted that the rate of GST for works contract undertaken with the Central Government Employees Welfare Housing Organisation would be 18%. According to Central Government Employees Welfare Housing Organisation, GST would be 12%. Accordingly, Central Government Employees Welfare Housing Organisation paid GST to the extent of 12% and after deducting the same made payment to the petitioner, for which the petitioner sought advance ruling on 11.05.2019 on the question as to what would be the rate of tax on works contract services rendered by it to the Central Government Employees Welfare Housing Organisation. By the impugned order dated 03.06.2022, the application for advance ruling was rejected, on the ground that Directorate General of GST Intelligence (DGGI) had initiated enquiry into the business activities of the petitioner and hold that case of the petitioner falls under the first proviso to Section 98(2) of the Act. The court observed that the petitioner had filed the application for advance ruling on 11.05.2019. Notice was issued to the petitioner by DGGI on 15.12.2021 much after filing of the application for advance ruling, therefore, the same cannot be a bar under the first proviso to sub-section (2) of Section 98 and the question of petitioner informing the Authority that it was being enquired into did not arise. The Authority for Advance Ruling was not justified in rejecting the application of the petitioner vide the order dated 03.06.2022.

Held that:- The Hon’ble High Court set aside order dated 03.06.2022 and directed the Respondent to  take on board the application filed by the petitioner on 11.05.2019 and pass an appropriate order thereon under sub-section (4) of Section 98 of the CGST Act after giving due opportunity of hearing to the petitioner, within a period of two months.