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In Re : Barbeque Nation Hospitality Ltd.

    Advance Ruling No. KAR ADRG 3 of 2020
    Decided On, 09 January 2020
    At, Authority For Advance Rulings Income Tax New Delhi
    For the Appearing Parties: Vishwasai Rajendra, Advocate.

Judgment Text

Dr. M.P. Ravi Prasad, Member (State Tax)

1. M/s. Barbeque Nation Hospitality Ltd. (called as the 'Applicant' hereinafter). Prestige Zeenath, 3rd Floor, #8/1, Residency Road, Richmond Town, Bengaluru-560025, Karnataka, having GSTIN Number 29AAKCS3053N1ZS, have filed an application for Advance Ruling under Section 97 of CGST Act, 2017 & KGST Act, 2017 read with Rule 104 of CGST Rules, 2017 & KGST Rules, 2017, in form GST ARA-01 discharging the fee of Rs. 5,000/- each under the CGST Act and the KGST Act.

2. The applicant, engaged in hospitality industry, took the premises, on lease, measuring 5773 sq. ft. of super built up area on the first floor of the commercial building known as "Prestige Plaza" situated at Yelahanka, Bengaluru, under the lease deed dated 8-3-2019, to run the restaurant and food catering services. The applicant is required to pay 'rent', 'car parking charges', 'security deposit', 'DG consumption charges' and 'maintenance charges' and the applicable GST thereon.

3. The applicant also is required to reimburse the "Electricity Charges", for electricity consumed, at actuals, in terms of clause 13.1 of the lease deed. The lessors raise monthly invoice for electricity charges, energy tax and demand charges, referring together as "Electricity Charges", charging GST @ 18%. The applicant raises the objection for charging GST on the said charges and questions the lessors about the legal authority/source of law. In view of the above the applicant filed the instant application for advance ruling.

4. Section 95(a) of the CGST Act, 2017, while defining the term 'advance ruling', stipulates that an applicant can seek advance ruling on the questions specified under Section 97(2) of the CGST Act, 2017, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the said applicant. In the instant case the questions, on which the applicant seeks advance ruling, are not in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the said applicant, but in relation to the service/s being received by them. Therefore the instant application is beyond the jurisdiction of this authority and hence is liable for rej

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ection. 5. In view of the above, we pass the following : RULING 6. The application filed by the Applicant for advance ruling is rejected, in terms of Section 98(2) of the CGST Act, 2017. Application rejected.