Tamil Nadu Rejects Advance Ruling Application Due to Pending Tax Proceedings Against Applicant

The applicant, M/s. Shanmugavel Thevar Sesappan is a contractor who provides contract services to Sattur Municipality. Under the contract, the applicant removes the waste dumped at the Sattur dump yard by the bio-mining process. The applicant is paid by the Sattur Municipality under an agreement based on the quantity of input waste processed from the Sattur Dump Yard by the applicant.

The applicant filed an application before the Tamil Nadu Authority for Advance Ruling asking the following questions:

“1. Classification of service viz, “Solid Waste of existing Management -Revamping dumped garbage in compost yards by Bio-mining process” provided by the applicant to Sattur Municipality.

2. Whether the service provided to Sattur Municipality is exempted as per Sl. No. 3 of Notification No. 12/2017-CT (Rate) dated 28-07-2024.”

The Tamil Nadu AAR observed that there was the proceedings on the same issue were already pending against the applicant. The AAR application was filed later by the applicant. Section 98(2) restricts AAR from admitting applications if the same issue is already pending in any proceeding.

The AAR rejected the applicant’s application because the same issue was already pending in tax proceedings before the department when the application was filed.