2019 (2) TMI 293 – THE NATIONAL ANTI-PROFITEERING AUTHORITY – TMI – Profiteering – Black Pepper – benefit of reduction in the rate of tax not passed – Section 171 of Central Goods and Service Tax Act, 2017 – Held that:- 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 hence there is no contravention of the anti- profiteering provisions contained in Section 171 (1) of the CGST Act, 2017 – application filed by the Applicants is not sustainable in terms of Section 171 of the CGST Act, 2017 – application dismissed. – 06/2019 Dated:- 31-1-2019 – Sh. B. N. Sharma, Chairman, Sh. J. C. Chauhan, Technical Member, Ms. R. Bhagyadevi, Technical Member And Sh. Amand Shah, Technical Member For the Applicant No. 1. : None For the Applicant No. 2 : Sh. Anwar Ali T. P., Additional Commissioner, DG Anti-Profiteeing ORDER 1. The present report dated 30.10.2018 has been received from the Directorate General of
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ofiteering 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 30.10.2018 that the invoice dated 21.06.2017 was issued by M/S S.J. Spices, while the post-GST invoice dated 05.07.2017 was issued by M/S Kerala Spices. Thus, a comparison of the two invoices is not possible. It is also stated that in the pre-GST era, the product "Black Pepper" attracted VAT@ 5% and there was no Central Excise Duty as per Central Excise Tariff Act, 1985. After implementation of the GST w.e.f. 01.07.2017, the tax rate of the above product was fixed 5%. The pre-GST & the post-GST sale invoice-wise details of the applicable tax rate and the base prices (excluding CST or GST) of the said products supplied by M/S S.J. Spices/ M/S Kerala Spices, are mentioned in the table below:- Table Description of the Product Pre-GST invoices issued by M/s S.J. Spices dated 21.0
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
.2019 but none appeared on the stipulated dates. 6. The Applicant No. 1 i.e. Kerala Screening Committee vide its letter dated 25.01.2019 has observed that pepper was exempted from excise duty and there was no difference in tax rate between two periods. 7. We have carefully considered the Report of the DGAP and the documents placed on record and find that the only issue that needs to be dwelled upon is as to whether there was 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. 8. 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.' 9. 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 hence we find that there is
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =