2019 (1) TMI 139 – NATIONAL ANTI-PROFITEERING AUTHORITY – TMI – Profiteering – four models of Motor Car – benefit of reduction in the rate of tax not passed – contravention of Section 171 of the CGST Act, 2017 – Held that:- First of all it is observed that the rate of tax was 15.63% in the pre-GST era which was increased to 29% in the post-GST era – It is evident that before discount base prices of all the products had remained the same. These facts have also not been disputed by the representative of the Applicant No. 1. Hence the provisions of Section 171 of the CGST Act 2017 are not attracted.
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It is clear that 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. 01/2019 Dated:- 2-1-2019 – SH. B. N. SHARMA, CHAIRMAN, SH. J. C. CHAUHAN, TECHNICAL MEMBER, MS. R. BHAGYADEVI, TECHNICAL MEMBER, SH. AMAND SHAH, TECHNICAL MEMBER Present:- Smt. A
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h of the four products by the Respondent, the details of the invoices are furnished in Table-A below: Table-A Particulars Wagon R AMT Swift VXI (O) Wagon R VXI Alto 800 LXI Pre-GST Post-GST Pre-GST Post-GST Pre-GST Post-GST Pre-GST Post-GST Invoice No. 11809050 11931762 11608607 1143723 11614808 1130822 11618491 1124140 Invoice Date 02.06.17 19.07.17 03.04.17 15.09.17 04.04.17 19.09.17 05.04.17 15.09.17 2. The above application 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. The DGAP has stated in his Report dated 28.09.2018 that the two invoices issued for each of the four products by the Respondent were scrutinized and it was observed that in the pre-GST era, the products namely, Wagon R VXI AMT , Swift VXI, Alto 800 LXI & Wagon R VXI (HSN code 8703) attracted total 15.63% duty incidence which included Central Excis
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17,930 Net Base price (After Discount) D=A+B-C 328,023 328,213 402,377 402,587 303,681 300,228 196,728 195,641 Assessable Value for Duty Purpose E 326,273 326,921 399,377 400,132 301,931 298,936 194,228 193,579 Excise Duty @12.5 F=E* 12.5% 40,784 – 49,922 – 37,741 – 24,278 – NCCD @ 1% G=E*1% 3,263 – 3,993.77 – 3,019 – 1,942 – Auto Cess @ 0.125% H=E-0.12 5% 408 – 499 – 377 – 243 – Infra Cess @1% I=E*1% 3,263 – 3,993.77 – 3,019 – 1,942 – CST @1% J=1% of (E to I 3,740 – 4,577.86 – 3,461 – 2,226 – GST @ 29% K=E* 29% – 94,807 – 116,038 – 86,691 – 56,138 Total Duty/Tax L=Sum of (F to J) or K 51,457 94,807 62,987 116,038 47,618 86,691 30,632 56,138 Ex-Factory Price M=D+L 379,480 423,020 465,364 518,625 351,299 386,919 227,360 251,779 Tool kit & Jack including tax N 463 458 550 545 458 458 438 438 Freight including Service tax O 25,201 24,116 27,144 25,975 25,201 24,116 23,432 21,942 Service Charge including Service Tax P 784 682 839 730 743 642 80 503 GST @ 29% on Freight and Service Cha
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were in inter-state sale (Sale from Haryana State to Kerala State) where 1% CST was charged in pre-GST period whereas in post-GST 29% tax was charged. Therefore, the cum-tax price had increased. 4. The DGAP also stated from the above Table-B that the Respondent had changed the net base price (after discount) and charged effective rate of tax post implementation of GST and details of such change are furnished in the Table- C given below:- Table-C Motor Car model Pre-GST net base price (in Rs.) Post-GST net base price (in Rs.) Increase/(Decrease) post-GST (in Rs.) Increase/ (Decrease) post-GST (in%) A B C D=(C-B) E=D/B Wagon R AMT 3,28,023 3,28,213 190 0.06% Swift VXI (O) 4,02,377 4,02,587 210 0.05% Wagon R VXI 3,03,681 3,00,228 (3,453) (1.14%) Alto 800 LXI 1,96,728 1,95,641 (1,087) (0.56%) 5. The DGAP further observed that the Respondent had reduced the base price by ₹ 3453/- in respect of Wagon R VXI and by ₹ 1087/- in respect of Alto 800 However, there was an increase in
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der Section 171 of the CGST Act, 2017. First of all it is observed that the rate of tax was 15.63% in the pre-GST era which was increased to 29% in the post-GST era, as could be seen from the tabulation shown in Table-B above. Secondly from the invoices referred above, it is evident that before discount base prices of all the products had remained the same. These facts have also not been disputed by the representative of the Applicant No. 1. Hence the provisions of Section 171 of the CGST Act 2017 are not attracted. 8. Based on the above facts it is clear that 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 above Applicant and the same is accordingly dismissed. 9. A copy of this order be sent to both the Applicants and the Respondent free of cost. File of the case be consigned after completion. – Case laws – Decisions – Judgements – Orders – Tax Management India – taxmanagementindia – t
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