2018 (12) TMI 1404 – NATIONAL ANTI-PROFITEERING AUTHORITY – 2019 (20) G. S. T. L. 394 (N. A. P. A.) – Profiteering – supply of Readymade Garments – benefit of reduction in the rate of tax not passed on – Section 171 of Central Goods and Service Tax Act, 2017 – Held that:- here was no reduction in the rate of tax on the above products w.e.f. 01.07.2017, hence the anti-profiteering provisions contained in Section 171 (1) of the CGST Act, 2017 are not attracted. Also, there is no increase in the per unit base price (excluding tax) of the above products and therefore the allegation of profiteering is not sustainable in terms of Section 171 of the CGST Act, 2017.
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There is no merit in the application – application dismissed. – Case No. 24/2018 Dated:- 24-12-2018 – 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. An
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ementation of the GST w.ef 01.07.2017. Thus it was alleged that the Respondent had indulged in profiteering in contravention of the provisions of Section 171 of Central Goods and Service Tax Act, 2017. In this regard, the Kerala State Screening Committee has relied on two invoices issued by the Respondent, one dated 02.06.2017 (Pre-GST) and the other dated 14.08.2017 (Post-CST). 2. The above application was examined by the Standing Committee on Anti-Profiteering and was referred to the DGAP vide minutes of its meeting dated 02.07.2018 for detailed investigations under Rule 129 (1) of the CGST Rules, 2017. 3. The DGAP has stated in his report dated 28.09.2018 that in the pre-GST era, Readymade Garments, viz., (a) Impact Shirts 700-800 H/S M.R.P. ₹ 439; (b) Impact Shirts 700-800 F/S M.R.P. ₹ 449; (c) Impact Shirts 900 H/S M.R.P. ₹ 489; (d) Impact Shirts 900 F/S M.R.P. ₹ 499; (e) Impact Shirts 1500 H/S M.R.P. ₹ 689; and (f) Impact Shirts 1500 F/S M.R.P. ͅ
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17 5% 345/ 5. Impact Shirts 1500 H/S M.R.P. 689 211 dated 02/06/2017 2% 475/- 493 dated 14/08/2017 5% 475/ 6. Impact Shirts 1500 F/S M.R.P. 699 211 dated 02/06/2017 2% 482/- 493 dated 14/08/2017 5% 482/ 4. The DGAP has submitted in his report that the rate of tax on the Readymade Garments namely (a) Impact Shirts 700-800 H/S M.R.P. ₹ 439; (b) Impact Shirts 700-800 F/S M.R.P. ₹ 449; (c) Impact Shirts 900 H/S M.R.P. ₹ 489; (d) Impact Shirts 900 F/S M.R.P. ₹ 499; (e) Impact Shirts 1500 HIS M.R.P. ₹ 689; and (f) Impact Shirts 1500 F/S M.R.P. ₹ 699; (HSN code 6205) was actually increased from 2% in the pre-GST era to 5% in the post-GST era. Moreover, the pre-GST and post-GST base prices (excluding tax) had remained the same. Therefore, the provisions of Section 171 of the CGST Act, 2017 have not been contravened and the allegation of profiteering by the Respondent was not established. 5. The above Report was considered by the Authority in iťs meeting
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