Case Law Details
Ravi Charaya Vs Hardcastle Restaurants Pvt. Ltd. (NAA)
Respondent is liable to pass on the benefit of GST rate reduction from 18% to 5% with denial of benefit of ITC, as was notified by the Central and the State Governments vide Notification No. 41/2017-Central tax (Rate) dated 14.11.2017 w.e.f. 15.11.2017. It is also established that the Respondent has not passed on the benefit of above tax reduction to his customers in terms of Section 171 (1) w.e.f. 15.11.2017 to 31.01.2018. On the basis of the pre rate reduction GST rate of 18% and the post rate reduction GST rate of 5% with denial of ITC of 9.11% of the turnover and the details of the product wise supplies made during the period from 15.11.2017 to 31.01.2018, as have been supplied by the Respondent himself, the amount of net higher sales realization due to increase in the base prices of the impacted products after comparing the average pre and post rate reduction prices of the products, despite the reduction in the GST rate from 18% to 5% or the profiteered amount is determined as Rs. 7,49,27, 786/- as per the provisions of Section 171(1) & (2) of the CGST Act, 2017 read with Rule 133 (1) of the CGST Rules, 2017.
Accordingly, the Respondent is directed to reduce prices of all the impacted products commensurately in respect of which profiteering has been computed as per Annexure-37 of the DGAP’s Report dated 15.06.2018 forthwith in terms of Rule 133 (3) (a) of the above Rules read with Section 171(1) of the above Act.
The Respondent is also directed to deposit 50% of the profited amount of Rs. 7,49,27,786/- i.e. Rs. 3,74,63,893/- in the Central Consumer Welfare Fund and the balance 50% in the Consumer Welfare Funds of the 10 States mentioned above as per the provisions of Rule 133 (3) (c) of the above Rules read with Section 171 (1) since the recipients who are millions of ordinary customers are not identifiable. The above amounts shall be deposited along with 18% interest payable from the dates from which the above amount was realized by the Respondent from his recipients till the date of deposit in the respective Consumer Welfare Funds as per the provisions of the above Rule. The above amount of Rs. 7,49,27,786/- along with the applicable interest thereon, shall be deposited within a period of 3 months from the date of passing of this order failing which it shall be recovered by the Commissioners of the Central and the State Tax of the concerned State Governments as per the provisions of their CGST/SGST Acts.
FULL TEXT OF ORDER OF NATIONAL ANTI-PROFITEERING AUTHORITY
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