2019 (2) TMI 294 – THE NATIONAL ANTI-PROFITEERING AUTHORITY – TMI – Profiteering – Brief (Jockey Brief IC125 M Black) – benefit of reduction in the rate of tax not passed on – contravention of the provisions of Section 171 of Central Goods and Service Tax Act, 2017 – Held that:- There was no reduction in the rate of tax on the above product w.e.f. 01.07.2017, and hence the anti-profiteering provisions contained in Section 171 (1) of the CGST Act, 2017 are not attracted – there is no merit in the application filed by the above Applicants – application dismissed. – 05/2019 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 31.10.2018 has been received from the Directorate General of Anti-Proflteering (DGAP) after detailed inv
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de 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 31.10.2018 that the "Brief '(HSN Code 61071990), was exempted from Central Excise duty, vide Notification No. 30/2004-CE dated 09.07.2004 and attracted only VAT @ 5%. 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 VAT or GST) of the said product supplied by the Respondent are mentioned in the table below:- Table S.No. Description of the Product Pre-GST Post-GST Base Price (Rs.) Tax Rate (VAT) Tax Amount (Rs.) Total Selling Price (Rs.) Base Price (Rs.) Tax Rate (GST) Tax Amount (Rs.) Total Selling Price(Rs.) 1. "Brief" (Jockey Brief IC125 M Black) 322.95 5% 16.15 339 322.95 5% 16.15 339 4. The DGAP has submitted in his report that the rate of tax o
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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 the anti-profiteering provisions contained in Section 171 (1) of the CGST Act, 2017 are not attracted and therefore we do not find any merit in the application filed by the above Applicants and accordingly, the same is dismissed. A copy of this order be sent t
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