State Level Screening Committee on Anti-Profiteering, Kerala., Director General Anti-Profiteering, Central Board of Indirect Taxes & Customs, Versus M/s. Peps Industries Pvt. Ltd.,
GST
2018 (12) TMI 1402 – NATIONAL ANTI-PROFITEERING AUTHORITY – 2019 (20) G. S. T. L. 377 (N. A. P. A.)
NATIONAL ANTI-PROFITEERING AUTHORITY – NAPA
Dated:- 24-12-2018
Case No. 22/2018
GST
SH. B. N. SHARMA, CHAIRMAN, SH. J. C. CHAUHAN, TECHNICAL MEMBER, MS. R. BHAGYADEVI, TECHNICAL MEMBER, SH. AMAND SHAH, TECHNICAL MEMBER
Ms. A. Shainamol, Additional Commissioner, SGST, Kerala for the Applicant No. 1.
Sh. Anwar Ali T. P. Additional Commissioner for the Applicant No. 2.
ORDER
1. The present report dated 27.09.2018, 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 Committ
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CGST Rules, 2017.
3. The DGAP has stated in his report dated 28.09.2018 that in the pre-GST era, the applicable Central Sales Tax (CST) on the product 'Peps Spring Koil Bornell Normal Maroon 75x60x6″ Mattress” was being levied @ 2% and Central Excise Duty @ 12.5%. In the post GST era the rate of tax was levied @ 28%. Details of the invoices issued by Respondent are as per the table given below:-
S.No.
Description of the product supplied
Pre GST rate
Post GST rate
Difference (in Rs.)
Invoice No.& Date
CST Rate
Central Excise Duty Rate
Price excluding Taxes (in Rs.)
Invoice No. & Date
GST rate
Price excluding GST (in Rs.)
1.
Peps Spring Koil Bornell Normal Maroon 75X60X6″ Mattress (HSN 94042910)
2901 dated 30.06.2017
2%
12.5%
7,293
C/0014196 dated 09.08.2017
28%
7,986
693
C/002255 dated 15.06.2017
2%
12.5%
7,293
C/003495 dated 21.07.2017
28%
7,643
350
4. After scrutiny of the above four invoices issued by the Res
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, Additional Commissioner, SGST, Kerala appeared on behalf of the Applicant No. 1. During the hearing she agreed with the report submitted by the DGAP.
6. We have carefully examined the report of the DGAP and the documents placed on record and find that the only issue that need to be dwelled upon in as to whether there is a case of reduction in the rate of tax and whether the provision of section 171 of CGST Act, 2017 are attracted in the case.
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 clear 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 and that the rate of tax on the said product has increased from 14.5% (2% CST + 12.5% Excise) to 28% and therefore the allegation of profiteer
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