Kerala State Screening Committee on Anti-Profiteering Vs Ms. Rosata Vitrified Pvt. Ltd. (National Anti-Profiteering Authority)
It was from the Invoices submitted clear that the base price of the product Vitrified Tiles Super Nano Plus (HSN Code 69072100) per box was Rs. 294.50 prior to 15.11.2017 and had remained the same even after GST rate reduction w.e.f. 15.11.2017. Therefore, the benefit of rate reduction appears to have been passed on. This Authority agrees with the DGAP’s Report dated 28.09.2018 and accordingly, holds that the allegation of profiteering is not sustainable. Hence, the provisions of Section 171 of the CGST Act, 2017, have not been contravened and there is no merit in the application forwarded by the Applicant No.1 and therefore the same is dismissed.
FULL TEXT OF ORDER OF NATIONAL ANTI-PROFITEERING AUTHORITY
1. The brief facts of the case are that the Applicant No. 1, 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 “Vitrified Tiles Super Nano Plus (HSN Code 69072100), by not passing on the benefit of reduction in the rate of tax w.e.f 11.2017, granted vide Notification No. 41/2017-Central Tax (Rate) dated 14.11.2017. It was therefore alleged that the Respondent had indulged in profiteering in contravention of the provisions of Section 171 of Central Goods and Service Tax (CGST) Act, 2017. In this regard, the Applicant No. 1 had relied on two invoices issued by the Respondent, invoice no. GST/577 dated 01.11.2017 issued in the pre-GST rate reduction period and invoice no. GST/742 dated 09.12.2017 issued in the Post-GST era.
2. The above application was examined by the Standing ommittee 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 present report dated 28.09.2018 has been received from the Directorate General of Anti-Profiteering (DGAP) after detailed investigation under Rule 129 (6) of the CGST Rules, 2017.
4. The DGAP in his report has stated that the GST rate on the “Vitrified Tiles Super Nano Plus” (HSN Code 69072100) was reduced to 18% from the existing rate of 28% w.e.f 15.11.2017, vide Notification No. 41/2017-Central Tax (Rate) dated 14.11.2017. Further, based on the scrutiny of the two invoices issued by the Respondent, received from the Standing Committee on Anti-profiteering along with the reference, the pre & post GST rate reduction sale invoice-wise details of the said product, have been furnished in the table below by the DGAP:-
