Sec 102- Rectification of advance ruling

102.1    Introduction
This section deals with the circumstances as to when an order of the authority or the Appellate authority can be rectified, time limit within which it can be done and the notice to the applicant or the appellant in case such rectification results in enhancing the tax liability or reducing the amount of admissible input tax credit.
102.2    Analysis
1.    The advance ruling can be rectified by the authorities on their own accord or upon receipt of application from the jurisdictional officer or the applicant, if there are any mistakes apparent on the record.
2.    The application for rectification can be made within six months, and cannot result in substantial amendment of the order.
3.    If the rectification results in increase in tax liability or reducing of input credit then a hearing has to be given to the applicant/appellant.
4.    The Appellate authority may amend the order to rectify any mistake apparent from the record, if such mistake:
(a)    Is noticed by it on its own accord, or
(b)    Is brought to its notice by the concerned or the jurisdictional officer or  (c) Is brought to its notice by the applicant. 102.3 Related Provisions
Section/Rule/ Form      Description     Remarks
Section 98      Procedure on receipt     of
application      This section states the procedure to be followed by the authority on receipt of an application or by the Appellate authority on a reference made to it by the authority. Section 98(6) provides for time limit of 90 days for pronouncement of advance ruling.
Section 101     Orders     of     the
Appellate Authority      This section talks about passing of the order by the appellate authority, it’s time limit, communication of the order and the situation where no advance ruling can be issued.
102.4 FAQs
Q1. When can an advance ruling order may be rectified?
Ans. An advance ruling may be amended by the authority or appellant authority, as the case may be, with a view to rectify any mistake apparent from the record, which:
(a)    is noticed by the AAR or Appellate Authority on its own accord, or
(b)    is brought to the notice of the AAR or Appellate Authority by the concerned or the jurisdictional officer or ;
(c)    is brought to the notice of the AAR or Appellate Authority notice by the applicant.
Q2. Under what circumstances, a notice is required to be issued to the applicant or appellant, as the case may be, before rectification of an advance ruling order?
Ans.  Before rectification of an advance ruling order, a notice is required to be issued to the applicant or appellant, as the case may be, to provide him a reasonable opportunity of being heard, if such rectification has the effect of:
     enhancing the tax liability or
     reducing the amount of admissible input tax credit.
102.5 MCQs
Q1. Rectification of order can be done under the following circumstances
(i)    to do justice
(ii)    when there is mistake apparent on record
(iii)    if it in the interest of revenue  (iv)      none of the above.
Ans.  (ii) when there is mistake apparent on record