Uttarakhand GST Advance Ruling 03/2017-18 on Excise Duty Exemptions
- Ruling
- Ruling No 03 /2017-18 dated 19th March 2018
- Authority
- Authority for Advance Ruling
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
In short
The company asked the Authority for Advance Ruling (AAR) if they could keep old excise duty exemptions after buying a business. The authority decided they could not answer this question because it did not relate to the Goods and Services Tax (GST) Act.
What has changed
How it worked before
Businesses often assumed that the AAR could provide guidance on any tax-related uncertainty following a business acquisition. Many owners believed that if a question involved tax benefits, the authority would be able to clarify how those benefits transitioned under the new GST regime.
What has changed
The authority ruled that it only has the power to answer questions specifically listed in the GST law. Because the request concerned old excise duty notifications rather than GST provisions, the authority rejected the application without looking at the merits of the case.
Who this affects
This ruling is relevant for business owners who have acquired a company through a slump sale and are unsure if they can continue claiming legacy tax exemptions from the pre-GST era.
What you should do
You should not assume this ruling sets a precedent for your own tax situation, as an advance ruling only binds the specific company that asked and its local tax office. If you have a question about your tax status, ensure it falls strictly within the list of topics allowed under Section 97(2) of the CGST Act before filing an application.
The ruling in detail
Authority for Advance Ruling
M/s Kanj Products Private Limited
Ruling No 03 /2017-18 dated 19th March 2018 · Uttarakhand
Questions before the authority
- If the assessee takes over an eligible unit as a going concern under slump sale agreement and there is a change in the ownership of the unit which was availing the benefit of area based exemption notification no. 50/2003-CE dated 10.6.2003, as amended, prior to 1.7.2017.
- If the said eligible unit availing of the exemption is physically shifted to a new location within the area specified in the said area based exemption notifications.
- If there is any addition or modification in the plant or machinery or on the production of new products after taking over an eligible unit during residual period of exemption.
Facts
The applicant sought an advance ruling regarding the applicability of a DIPP notification dated 5.10.2017 and a CBEC circular dated 27.11.2017. The applicant had acquired an eligible unit as a going concern via a slump sale agreement, which was previously availing area-based excise duty exemptions. They requested clarification on whether these benefits would continue following the change in ownership, relocation of the unit, or modifications to plant and machinery.
Ruling
| Question | What the authority ruled |
|---|---|
| Maintainability of application | Not entertainable Questions do not fall under the scope of Section 97(2) of the CGST/SGST Act |
The Authority for Advance Ruling concluded that the questions raised by the applicant do not fall under the purview of the Authority as defined under the CGST/SGST Act, 2017. Consequently, the request was deemed not entertainable. The authority did not provide a ruling on the merits of the tax benefits requested.
Reasoning
The Authority observed that the clarification requested by the applicant pertains to notifications and circulars not issued under the provisions of the CGST/SGST Act. Furthermore, the issues raised do not fall within the list of subjects specified in sub-clauses (a) to (g) of Section 97(2) of the CGST/SGST Act, 2017. As the subject matter is outside the **statutory jurisdiction** of the Authority for Advance Ruling, the request was rejected as **not maintainable**.
Provisions relied on
- Section 97(1) of the CGST/SGST Act, 2017
- Section 97(2) of the CGST/SGST Act, 2017
- Section 100 of the CGST/SGST Act, 2017
For the practitioner
This ruling serves as a procedural reminder that the Authority for Advance Ruling is limited to specific questions defined under Section 97(2) of the GST Act. It clarifies that the Authority will not entertain requests for interpretation of notifications or circulars that do not originate from the GST legislation itself. Practitioners should ensure that their queries strictly align with the **statutory scope** of the Authority before filing.
Source
This is a summary prepared from the published order, which is a scanned document. It is a reading aid and not the authority: where the two differ, the order governs. Verify every provision against the original before relying on it.
Original order: https://www.gstcouncil.gov.in/sites/default/files/AAR/uttarakhand_03-2017-18_dt_19-03-18.pdf
Legibility of the scan, as read: high.
Prepared 21-10-2026.
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