2018 (12) TMI 1600 – NATIONAL ANTI-PROFITEERING AUTHORITY – 2019 (20) G. S. T. L. 398 (N. A. P. A.) – Profiteering – supply of “Handloom Design-King Supreme Lungi” – benefit of reduction in the rate of tax at the time of implementation of GST w.e.f 01.07.2017 not passed on – contravention of the provisions of Section 171 of Central Goods and Service Tax Act, 2017 – Held that:- 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.
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The Respondent has not contravened the provisions of Section 171 of the CGST Act, 2017 and hence there is no merit in the application filed by the Applicant – application dismissed. – Case No. 26/2018 Dated:- 27-12-2018 – SH. B. N. SHARMA, CHAIRMAN, SH. J. C. CHAUHAN, TECHNICAL MEMBER, MS. R. BHAGYADEVI, TECHNICAL MEMBER Present:- M
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vice Tax (CGST) Act, 2017. In this regard, the Kerala State Screening Committee had relied on two invoices issued by the Respondent, one dated 07.04.2017 (Pre-GST) and the other dated 18.08.2017 (Post-CST). 2. The above reference was examined by the Standing Committee on Anti-Profiteering and was further referred to the DGAP vide minutes of it's 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, the applicable Value Added Tax (VAT) was nil and the Central Excise Duty on the product was exempted vide Notification No.30/2004-CE dated 09.07.2004. In the post GST era the rate of tax was levied @ 5%. The details of the invoices issued by Respondent are as per the table given below:- Sr.No. Description of the product supplied Pre-GST (Invoice no. 160 dated 07.04.2017) Post-GST (Invoice No. JI/11842 dated 18.08.2017) Base Price after Discount (Rs.) Tax Rate Tax Amoun
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x in the pre-GST period was shown as 2% w.r.t. the said invoice No. 160 dated 07.04.2017, however, it was clear from the said invoice itself that there was actually nil tax. Thus, the two aforementioned supporting invoices confirm that there was an increase in the rate of tax on the product Handloom Design-King Supreme Lungi from nil in the pre-GST era (there was no Excise Duty or VAT) to 5% in the post-GST era. Conclusively, the DGAP has submitted that as there was no reduction in the tax rate of the said product, the provisions of Section 171 of the CGST Act, 2017 were not contravened and the allegation of profiteering by the Respondent was not established. 5. The above report was considered by the Authority in its meeting held on 03.10.2018 and it was decided that as there was no private applicant, the Kerala Screening Committee may be asked to appear before the Authority. On 31.10.2018 Smt. A.Shainamol, Additional Commissioner, SGST, Kerala appeared on behalf of the Applicant No. 1
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