Mr. Rohit intends to start a new manufacturing business in Jaipur. However, he is not able to determine the classification of the goods proposed to…

(a) Mr. Rohit intends to start a new manufacturing business in Jaipur. However, he is not able to determine the classification of the goods proposed to be manufactured and supplied by him since the classification of said goods has been contentious. Mr. Rohit read an article about advance ruling in the newspaper and decided to apply for advance ruling so as to avoid litigation later. You are required to advise Mr. Rohit with respect to following: (i) No, Mr. Rohit and his tax consultant are not correct. An advance ruling is binding only on the applicant who had sought it and on the concerned officer. An advance ruling is not applicable to similarly placed other taxable persons in the State. Thus, Mr. Rohit cannot classify the goods to be supplied by him on the basis of his friend Mr. Shivam's advance ruling order. (ii) No, Mr. Rohit need not register to apply for advance ruling since advance ruling can be sought by a registered person or person desirous of obtaining registration. It is not mandatory for a person seeking advance ruling to be registered.