Case Law Details
Deputy Commissioner of State Tax Vs A. J. Enterprises (NAA)
NAA observe that the DGAP in his Report dated 20.08.2020 has mentioned the investigation period from 15.11.2017 to 30.09.2019 while the profiteering has been computed upto 31.10.2019 as has been shown in Annexure 25 of his Report. The DGAP vide his supplementary Report dated 24.11.2020 has also admitted that the profiteering amount has been computed for the period 15.11.2017 to 31.10.2019. Accordingly, the DGAP is directed to compute the profiteered amount till 30.09.2019 as per the notice issued to the Respondent.
FULL TEXT OF ORDER OF NATIONAL ANTI-PROFITEERING AUTHORITY
1. The present Report dated 20.08.2020 has been received from the Applicant No. 2 i.e. the Director General of Anti-Profiteering (DGAP) after detailed investigation under Rule 129 (6) of the Central Goods & Service Tax (CGST) Rules, 2017. The brief facts of the present case are that a reference was received by the DGAP from the Standing Committee on Anti-Profiteering on 09.10.2019 recommending a detailed investigation in respect of an application alleging profiteering in respect of restaurant service supplied by Respondent despite reduction in the rate of GST from 18% to 5% w.e.f. 15.11.2017, vide Notification No. 46/2017-Central Tax (Rate) dated 14.11.2017 by way of commensurate reduction in prices, in terms of Section 171 of the CGST Act, 2017. A summary sheet showing extent of profiteering, prepared by the Applicant No. 1 received from the Screening Committee, had also been enclosed with the reference received from the Standing Committee on Anti-profiteering.
2. The aforesaid issue was examined by the Maharashtra State Screening Committee which observed that the Respondent had not passed on the appropriate benefit to his customers on account of reduction in tax rate and forwarded the complaint to the Standing Committee on Anti-profiteering for further action.
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