State Level Screening Committee on Anti-Profiteering, Kerala, Director General Anti-Profiteering, Central Board of Indirect Taxes & Customs Versus M/s Zeba Distributors, Immanuel Stores
GST
2018 (12) TMI 1001 – THE NATIONAL ANTI-PROFITEERING AUTHORITY – 2019 (20) G. S. T. L. 384 (N. A. P. A.)
THE NATIONAL ANTI-PROFITEERING AUTHORITY – NAPA
Dated:- 17-12-2018
19/2018
GST
Sh. B. N. Sharma, Chairman, Sh. J. C. Chauhan, Technical Member And Ms R. Bhagyadevi, Technical Member
For the Applicant : Smt. A. Shainamol, Additional Commissioner, SGST, Kerala, Sh. Anwar Ali, Additional Commissioner
ORDER
1 . The present report dated 19.09.2018, has been received from the Applicant No. 2 i.e. The Directorate General of Anti-Profiteering (DGAP) after detailed investigation under Rule 129 (6) of the Central Goods & Service Tax (CGST) Rules, 2017. The brief facts of the case are that The Kerala State Screening Committee on Anti-Profiteering vide the minutes of it's meeting
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lue Added Tax (VAT) on the product “Eastern Meat Masala” was being levied @ 5% and there was no Central Excise Duty as per Central Excise Tariff Act, 1985. In the post GST era the rate of tax was also levied @ 5%. Details of the invoices issued by Respondent are as per the table given below:-
Sr. No.
Description of the product
Pre-CST
Post-GST
Difference in price(Rs.)
Invoice No./Date
Tax rate (VAT)
Discounte d price excluding VAT (Rs)
Invoice No./Date
Tax rate (GST)
Discounted price excluding GST (Rs)
1 .
Eastern Meat Masaia (HSN Code 0910)
Z171000232 dated 06/02/2017
50/0
238/-
Z1711224125 dated 18/121/2017
5%
238/-
4. The DGAP after scrutiny of the above two invoices issued by the Respondent has intimated that there was no reduction in the rate of tax on the product “Eastern Meat Masala” which was 5% both in the pre-GST era as well as in the post-GST era (GST). Further, it was also intimated by The DGAP that
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6. We have carefully examined the DGAP's report and the documents on record and find that the following issues are required to be settled in the present proceedings:-
I. Whether there was reduction in the rate of tax on the product in question w.e.f. 01.07.2017?
ll. Whether any benefit of reduction in the rate of tax was to be passed on?
7. Perusal of Section 171 of the CGST Act shows that it provides as under:-
(1). “Any reduction in rate of tax on any supply of goods or services or the benefit of input tax credit shall be passed on to the recipient by way of commensurate reduction in prices.”
8. It is apparent from the perusal of the facts of the case that there was no reduction in the rate of tax on the above product w.e.f. 01-07-2017, hence the anti-profiteering provisions contained in Section 171 (1) of the Central Goods and Services Tax Act, 2017 are not attracted. There is also no increase in the per unit base price (excluding tax) of the above product and therefor
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