Kerala State Screening Committee on Anti-profiteering, Director General Anti-Profiteering, Central Board of Indirect Taxes & Customs, Versus M/s. Asian Paints Ltd.,
GST
2019 (1) TMI 21 – NATIONAL ANTI-PROFITEERING AUTHORITY – 2019 (20) G. S. T. L. 391 (N. A. P. A.)
NATIONAL ANTI-PROFITEERING AUTHORITY – NAPA
Dated:- 27-12-2018
Case No. 29/2018
GST
Sh. B. N. Sharma, Chairman, Sh. J. C. Chauhan, Technical Member, Ms. R. Bhagyadevi, Technical Member
Smt. 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 28.09.2018, has been received from the Applicant No. 2 i.e. the Director 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 me
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y @ 12.50% on 70% of the MRP, in terms of Notification No. 49/2008-CE (N.T.), dated 24.12.2008. On implementation of the GST w.e.f. 01.07.2017, the pre-GST rate and the post-GST sale invoice-wise details of the applicable rate of tax and the base price (excluding Central Excise Duty, VAT or GST) of the said product supplied by the Respondent are furnished in the table below:-
Table
Period
Pre-GST
Post-GST
1.
Product Description
A
Paint (AP Apex Classic WT 10 LT (HSN Code 3209)
2.
Invoice No.
B
13006429
KR1701110400
3.
Invoice Date
C
20.06.2017
09.11.2017
4.
MRP as per Annexure-7 (Rs.)
D
2.610
2,660
5.
Price before discount per unit (Rs.)
E
2,159
1,927
6.
Discount per unit (Rs.)
F
75.57
67.45
7.
Price after discount per unit (Rs.)
G=E-F
2,083.43
1,859.55
8.
Central Excise Duty @12.5% on 70% of MRP (Rs.)
H=(D*70%)*12.5%
228.38
–
9.
Base Price (Excluding duties & taxes) (Rs.)
I=G-H
1,855.05
1,859.55
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discount and such an increase couldn't qualify as profiteering due to reduction in the tax rate, thus, the provisions of Section 171 (1) of the CGST Act, 2017 relating to profiteering were not contravened in the instant case.
5. The above Report was considered by the Authority in it's 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. During the hearing she agreed with the report submitted by the DGAP.
6. We have carefully considered the DGAP's Report and the documents placed on record to examine whether there was any reduction in the GST rate and whether the benefit of reduction in the rate of tax was passed on or not to the recipient as provided under Section 171 of the CGST Act, 2017.
7. From the invoices referred above, it is evident that the Res
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