Section 105 of CGST Act, 2017 – Powers of Authority and Appellate Authority

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Section 105 of CGST Act, 2017 – Powers of Authority and Appellate Authority

Act: Central Goods and Services Tax Act, 2017
 Chapter: XVII – Advance Ruling
 Section Covered: Section 105
 Effective From: 01st July 2017

🔎 Introduction

Section 105 of the CGST Act, 2017 defines the powers of:

• Authority for Advance Ruling (AAR), and
• Appellate Authority for Advance Ruling (AAAR).

This provision grants them powers similar to those of a civil court for the purpose of conducting proceedings and ensures that advance ruling proceedings are treated as judicial proceedings.

It strengthens the legal authority and procedural framework of the Advance Ruling mechanism.

📜 Bare Provision – Section 105 (Key Highlights)

1️⃣ The Authority and Appellate Authority shall have powers of a civil court under the Code of Civil Procedure, 1908 for the purpose of:

  • Discovery and inspection

  • Enforcing attendance of any person

  • Examining on oath

  • Issuing commissions

  • Compelling production of books of account and other records

2️⃣ Every proceeding before the Authority or Appellate Authority shall be deemed to be a judicial proceeding within the meaning of:

  • Section 193 of the Indian Penal Code (false evidence)

  • Section 228 of the Indian Penal Code (intentional insult or interruption)

✅ Meaning in Simple Words

Section 105 gives AAR and AAAR:

✔ Powers similar to civil courts
✔ Authority to summon persons
✔ Authority to demand documents
✔ Power to examine witnesses on oath

Further, proceedings are treated as judicial proceedings, meaning false statements may attract penal consequences.

🏛 Civil Court Powers Granted

PowerPurpose
Discovery & InspectionVerify documents
Enforcing AttendanceSummon persons
Examination on OathRecord evidence
Issuing CommissionsEvidence collection
Compelling ProductionObtain records

These powers ensure proper adjudication.

⚖️ Judicial Nature of Proceedings

By declaring proceedings as judicial proceedings:

✔ False evidence may attract prosecution
✔ Insult or obstruction may invite penalty
✔ Seriousness of proceedings is maintained

Thus, applicants must provide accurate and truthful information.

📖 Practical Illustration

Example 1 – Summoning Documents

If Authority doubts classification of goods, it may:

➡ Direct applicant to produce invoices, agreements, technical documents.

Example 2 – Examination on Oath

If factual clarification is required:

➡ Authority may examine responsible officer under oath.

Example 3 – False Statement

If applicant knowingly gives false evidence:

➡ It may attract consequences under IPC provisions.

🎯 Objective of Section 105

The purpose of this section is to:

✔ Provide procedural strength to AAR/AAAR
✔ Ensure fair and effective inquiry
✔ Prevent misuse of process
✔ Maintain sanctity of proceedings

Without such powers, the Authority would lack enforcement capability.

🔄 Section 105 in Advance Ruling Framework

SectionSubject
Section 103Binding Nature
Section 104Ruling Void
Section 105Powers of Authority

Section 105 concludes Chapter XVII relating to Advance Ruling.

📌 Important Points to Remember

• AAR/AAAR have powers of civil court (limited purpose)
• Proceedings treated as judicial proceedings
• False evidence punishable
• Authority can compel attendance and records
• Ensures integrity of advance ruling system

⚖️ Judicial Perspective

Courts have emphasized that:

• Though AAR is quasi-judicial body, it must follow principles of natural justice.
• Powers under Section 105 strengthen adjudicatory capacity.
• However, these authorities cannot exceed jurisdiction conferred under Section 97(2).

Thus, procedural power does not expand substantive jurisdiction.

❓ Frequently Asked Questions (FAQs) – Section 105 CGST

Q1. Does AAR have civil court powers?

Yes, for specified purposes.

Q2. Can Authority summon a person?

Yes.

Q3. Are proceedings judicial in nature?

Yes.

Q4. Can false evidence lead to prosecution?

Yes.

Q5. Does Section 105 expand jurisdiction?

No. It only grants procedural powers.

Q6. Can Authority enforce attendance?

Yes.

Q7. Can it compel production of records?

Yes.

Q8. Is oath administration allowed?

Yes.

Q9. Does it follow Code of Civil Procedure fully?

Only limited powers for specified purposes.

Q10. Why is Section 105 important?

It gives legal strength and enforceability to advance ruling proceedings.

📝 Conclusion

Section 105 of the CGST Act, 2017 empowers the Authority for Advance Ruling and the Appellate Authority with powers of a civil court and declares their proceedings as judicial proceedings. This ensures procedural discipline, legal sanctity, and effective functioning of the advance ruling framework.

With this provision, Chapter XVII of the CGST Act (Sections 95–105) stands complete, forming a comprehensive statutory mechanism for Advance Ruling under GST law.

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