Kerala State Screening Committee on Anti-profiteering, Director General Anti-Profiteeing, Central Board of Indirect Taxes And Customs Versus M/s Emke Siks & Garments Pvt. Ltd., Thrissur.
GST
2019 (2) TMI 738 – THE NATIONAL ANTI-PROFITEERING AUTHORITY – 2019 (22) G. S. T. L. 288 (N. A. P. A.)
THE NATIONAL ANTI-PROFITEERING AUTHORITY – NAPA
Dated:- 11-2-2019
10/2019
GST
Sh. B. N. Sharma, Chairman, Sh. J. C. Chauhan, Technical Member And Ms. R. Bhagyadevi, 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 05.11.2018 has been received from the Directorate General of Anti-Profiteering (DGAP) on 12.11.2018 after detailed investigation under Rule 129 (6) of the Central Goods & Services 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 meeting held o
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se 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 CST) 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 (VAT)
Tax Amount (Rs.)
Total Selling Price (Rs.)
1.
“”Shirts” (Design 689)
649.52
5%
32.48
682
649.52
5%
32.48
682
4. The DGAP has submitted in his report that the rate of tax on the product remained same in the pre-GST and the post- GST era. Moreover, the pre-GST and post-GST base prices (excluding tax) had remained the same. Therefore, the provisions of Section 171 of the CGST Act, 2017 have not been c
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AP 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 provisions 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 the product was exempted from the Central Excise Duty, vide Notification No. 30/2004- CE dated 09.07.2004 and only attracted VAT @ 5%. After implementation of the GST w.e.f. 01.07.2017, the tax rate of the above product was fixed @ 5%. Therefore, there was no reduction in the rate of tax and hence provisions of provisions of section 171 are not attracted in this case.
10. As far as the submission of the Applicant No. I
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