Kerala State Screening Committee on Anti-Profiteering, Director General Anti-Profiteering, Central Board of Indirect Taxes & Customs Versus M\/s Kajaria Ceramics Ltd.
GST
2019 (3) TMI 429 – NATIONAL ANTI-PROFITEERING AUTHORITY – TMI
NATIONAL ANTI-PROFITEERING AUTHORITY – NAPA
Dated:- 1-3-2019
Case No. 14\/2019
GST
Sh. B. N. Sharma, Chairman, Sh. J. C. Chauhan, Technical Member, Ms. R. Bhagyadevi, Technical Member And Amand Shah, Technical Member
\nMs. A. Shainamol, Additional Commissioner, SGST, Kerala for the Applicant No. 1.
\nSh. Anwar Ali T.P., Additional Commissioner for the Applicant No. 2.
\nORDER
\n1. The brief facts of the case are that The Kerala State Screening Committee on Anti-Profiteering vide the minutes of its meeting held on 08.05.2018 had referred the present case to the Standing Committee on Anti-profiteering, alleging profiteering by the Respondent on the supply of 'Caribbean Wood Tile' (here-in referred to as the product) by not passing o<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n entral Excise Duty @ 12.5% of the 60% of the MRP and there was no VAT or CST charged in the invoice whereas after implementation of the GST w.e.f. 01.07.2017, the tax rate of GST on the said product was fixed at 28%. The DGAP has further furnished the pre-GST & the post-GST sale invoice-wise details of the applicable tax rate and base price (excluding CST or GST) of the said product supplied by the Respondent in the table given below:- = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n namol, Additional Commissioner, SGST, Kerala appeared on behalf of the Applicant No. 1 on 31.10.2018. During the hearing, it was observed that the DGAP report had not considered the MRP and base price (excluding VAT) of the product in question. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n from 13.97% to 28%. Hence, Section 171 of the CGST Act, 2017, is not attracted. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Kerala State Screening Committee on Anti-Profiteering, Director General Anti-Profiteering, Central Board of Indirect Taxes & Customs Versus M\/s Kajaria Ceramics Ltd.GST2019 (3) TMI 429 – NATIONAL ANTI-PROFITEERING AUTHORITY – TMINATIONAL ANTI-PROFITEERING AUTHORITY – NAPADated:- 1-3-2019Case No. 14\/2019 GSTSh. B. N. Sharma, Chairman, Sh. J. C. Chauhan, Technical Member, Ms. R. Bhagyadevi, Technical Member And Amand … Continue reading “Kerala State Screening Committee on Anti-Profiteering, Director General Anti-Profiteering, Central Board of Indirect Taxes & Customs Versus M\/s Kajaria Ceramics Ltd.”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-17204","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/17204","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17204"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/17204\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17204"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17204"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17204"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nPeriod
\nPre-GST (prior to 01.07.2017)
\nPost-GST (post 01.07.2017)
\nDescription of the product supplied
\nCaribbean Wood Tile
\nInvoice No. & Date
\n2217100715 dated 27.04.2017
\n4417101296 dated 25.08.2017
\nMRP Per Box
\n800
\n800
\nBase price (in Rs.)
\n489.60
\n468
\nExcise Duty (12.5% on 40% of MRP)
\n60
\nNil
\nBase Price (excluding Duties and Taxes)
\n429.60
\n468
\nGST
\nNil
\n28%
\nTotal Tax Rate
\n13.97%
\n28%
\n5. After scrutiny of the above two invoices issued by the Respondent, the DGAP has intimated that the rate of tax on the product was 13.97% in the pre-GST er<\/p>\n
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\n7. The Authority accordingly vide its letter dated 13.12.2018 had returned the report to the DGAP for re-investigation on the above mentioned issue under Rule 133(4) of the CGST Rules, 2017.
\n8. The DGAP vide his Report dated 20.12.2018 has submitted that as per Annexure-7 of the minutes of the Kerala Screening Committee dated 08.05.2018, profiteering was alleged against the Respondent, after introduction of GST w.e.f. 01.07.2017. The DGAP has further stated that the Respondent is listed at Sr. no. 77 of Annexure 7 to the minutes of the meeting of State level Screening Committee of Kerala dated 14.05.2018 wherein it was mentioned that the product attracts VAT @ 14.50%. On scrutiny of pre-GST invoice no. 2217100715 dated 27.04.2017, referred to <\/p>\n
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\n10. We have carefully examined 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 reduction in the rate of tax on the product in question after introduction of GST and whether the provisions of section 171 of CGST Act, 2017, are attracted. Perusal of Section 171 of the CGST Act, 2017, reads as under:-
\n(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.”
\n11. On perusal of the facts of the case and the details provided in the table given above in para 4 it is apparent that there was no reduction of tax with the introduction of GST. The DGAP on examining various facts has categorically mentioned that the invoices very clearly show that no VAT was levied and CST was also exempted prior<\/p>\n
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