DG Anti Profiteering Vs MRF Corporation Pvt. Ltd. (GSTAT)
The proceedings arose under Section 171 of the CGST Act, 2017 and Rules 129 and 130 of the CGST Rules concerning allegations of profiteering against MRF Corporation Pvt. Ltd. The Directorate General of Anti-Profiteering (DGAP) submitted an investigation report dated 27.02.2020 alleging that the Respondent had not passed on the benefit of GST rate reduction from 28% to 18% effective from 27.07.2018. The erstwhile National Anti-Profiteering Authority (NAA), through Interim Order No. 37/2020 dated 11.12.2020, remanded the matter back to the DGAP under Rule 133(4) for further investigation on several issues.
The NAA observed contradictions in the DGAP’s findings regarding products such as “SP EP PRIMER GREY – 1 Liter” and “SP EP PRIMER GREY – 4 Liter.” It noted that in some instances the base prices before and after GST rate reduction remained the same, which contradicted allegations that the Respondent had increased base prices to deny GST benefits. The NAA also questioned the DGAP’s treatment of approximately 90 products as “new products launched post rate reduction” without verifying whether they had been sold during earlier months such as March, April, or May 2018. The NAA therefore directed the DGAP to conduct a fresh investigation and examine the Respondent’s claims carefully.
