Delhi AAR Refuses Advance Ruling After GST Intelligence Issues Notice On Same Issues

A coram of Bhavan Meena and Asha Chaudhary noted that the applicant did not disclose the issuance of the show cause notice during the advance ruling proceedings after it was issued, which the Authority treated as suppression of a material fact.

The applicant, Young Optimistic Transport Solutions Private Limited, is primarily engaged in providing and operating public transportation services in the form of air-conditioned buses for the Department of Transport under the Government of NCT of Delhi, pursuant to a concession agreement.

The company had sought the ruling on the classification of its air-conditioned bus services provided to the Delhi government's transport department, the applicable GST rate, and eligibility to claim GST Input Tax Credit (ITC). However, during the pendency of the application, the Directorate General of GST Intelligence issued a show cause notice dated 23 July 2024 covering the same issues.

The authority observed that although the application was admissible when filed, the subsequent issuance of a show cause notice rendered the issues sub judice.

It was pointed out that "Section 98(2) of the CGST Act, 2017, provides that the Authority shall not admit an application where the question raised is already pending or decided in any proceedings in the case of an applicant under the provisions of the Act."

Accordingly, the application was rejected without any determination on the merits of the GST liability.

Applicant's Name: Young Optimistic Transport Solutions Private Limited

Advance Ruling Number: 13/DAAR/2025

Appearance for Applicant: Neeraj Sharma, Nisar Batra and Vineet Bhatia