2019 (2) TMI 297 – THE NATIONAL ANTI-PROFITEERING AUTHORITY – TMI – Profiteering – Shorts – benefit of reduction in the rate of tax at the time of implementation of the GST not passed on – contravention of the provisions of 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, 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 Applicants – application dismissed. – 07/2019 Dated:- 4-2-2019 – 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 Direc
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ed by the Standing Committee on Anti-Profiteering 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 31.10.2018 that the "Shorts"(HSN Code 62034200), 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. "Shorts" (Jockey Shorts US56 M ASSTD) 380 5% 19 399 380 5
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post GST sale which as per Kerala Screening Committee is an instance of profiteering. 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, hence the anti-profiteering provisions contained in Section 171 (1) of the CGST Act, 2017 are not attracted. Hence, we do not find any merit in the application filed by the Applicants and according
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