Appeal before Appellate Authority not maintainable on issues in which no ruling was sought by AAR: AAR Karnataka

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Categories: Advance Ruling
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Facts: M/s. Tathagat Heart Care Centre LLP, is a Cardiology Specialized Hospital running on a premise taken on lease. The premises are used for treatment of heart patients as a lifesaving activity with latest equipment / machineries. Critical care patients are admitted in special rooms / general wards with lifesaving support devices, beds and oxygen supply, ICU with 24 x 7 attendance for timely monitoring of the patients. They have taken a premise on rental basis for heart care services.

Issues Involved: Whether GST is leviable on the rent payable on the leased premises.

Held: The Hon’ble AAR of Karnataka vide order no. KAR/AAAR/01/2018-19 dated September 5, 2018, observe that these issues are outside the realm of our consideration. The scope of the Appellate Authority for Advance Ruling under section 101 of the Act is limited to passing such order, as it thinks fit, confirming or modifying the ruling appealed against or referred to. There was no question raised before the AAR seeking a ruling on the aspect of ITC used in providing exempted supplies and refund of Input Tax credit. This issue has been raised for the first time before us in appeal.

We are of the view that, there can be no appeal on issues on which no ruling was sought before the Authority for Advance Ruling under section 97 of the Act and which was not examined by the AAR. As such, the plea of the Appellant on this issue is dismissed, as non-sustainable.

Citation: [2018] 97 taxmann.com 509 (AAAR-KARNATAKA)

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