Case Law Details
Sh. K.G.M. Shushan Vs Praxis Home Retail Ltd. (NAA)
NAA finds that the DGAP claimed that he has collected all relevant data and information including documents from the Respondent and have carried out in-depth investigation. However, after going through the DGAP’s investigation report, its annexures & calculations, the Respondent’s submissions and the other facts on record, the Authority finds that: –
(i) The DGAP’s report mentions that, vide Notification No. 41/2017-Central Tax (Rate) dated 14.11.2017, the rate of tax (GST) was reduced from 28% to 18% on subject goods and profiteering had been calculated on such subject goods. To cross verify the same, we had gone through the Annexure 19, i.e. the calculation sheet, to the DGAP’s Report dated 27.11.2020, and checked random entries. It has come to light that at Serial nos. 69694 and 71039, goods were taxed at 12% and 5% respectively and profiteering of Rs. 394.43/- and Rs. 25.23/- respectively have been calculated on such goods as well. Many such entries have been observed by the Authority.
(ii) At Serial No. 91 for the product “Screw On front connector 2Pcs”, it has been observed that the base price in pre-GST was Rs. 7.27/- and in post-GST it was Rs. 0.85/-. Further, at Sr. No. 994 for the product “SS16 LUMOS METALLIC BASE LAMP ASRTD” the base price in pre-GST era is Rs. 934.38/- and in post-GST, it is taken Rs. 3.47/-. It is observed that there is a substantial difference in the base prices of the same product and, at Serial No. 111 for the product “Screw On front connector 2Pcs”, the base price of the goods is in negative, that appears to be erroneous.
(iii) In Table – D, the state wise break up of amount of profiteering has been given and in the last row the sum of the profiteering is given as Rs. 3,67,88,027/-. However, at the time of verification, it has come to notice that the actual sum of the entries is Rs. 3,50,38,029/- in the table and there is a difference of Rs. 17,49,998/-.
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