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Tirumala Milk Products Pvt Ltd
AAR application can not be admired when investigation is already initiated.
The conditions to be considered before admission of application, on the basis of above proviso are as under :-
i. Whether the question raised is pending or decided in any proceedings
ii. Whether the question raised is pending or decided in the case of applicant
iii. Whether the question raised is pending or decided under provisions of this Act
It is very clear from the above that the first proviso to Section 98(2) of the CGST Act 2017 does not specify as to with whom the issue pertaining to the question raised has to be pending, but merely specifies that it has to be pending or decided under the provisions of this Act.
Hence, the argument of the applicant that the issue must be pending before the jurisdictional officer is not tenable under the law. In the instant case, the Deputy Commissioner, Office of the Principal Commissioner of Central Tax, Bangalore East Commissionerate, Bangalore have reported vide their letter dated 18th Aug 2020 that the Directorate of GST Intelligence, Bangalore Zonal Unit have initiated the investigation against the applicant, with regard to mis-classification of “flavoured milk”, under Incident Report No.35/2019-20, which is under progress.
DGSTI has recorded the statements of the authorised representatives of the applicant and the applicant has also paid ₹2.97 Lacs towards pre-deposit. Further it is an admitted fact that the initiation of investigation was done prior to filing of the instant application, by issuing summons dated 18.02.2019, 15.03.2019 & 14.08.2019. Thus all the required three conditions have been satisfied in the instant case and hence the application is liable to be treated as inadmissible.
The details of the case can be read here : ckfm7e4ozcluu0874m7ed3th6|Tirumala M