Case Law Details
Dr. Meenakshi Agrawal Vs M/s. S.R. Lifesciences (Competition Commission of India)
The Competition Commission of India (CCI) has issued a directive to the Director General of Anti-Profiteering (DGAP) to conduct a further investigation into allegations of anti-profiteering against S.R. Lifesciences and its two suppliers. The allegations, brought forth by Dr. Meenakshi Agrawal, concern the respondents’ failure to pass on the benefits of a GST rate reduction to the consumers.
Analysis: The case revolves around an application by Dr. Agrawal that claimed the selling price of “ECLAT SERUM”, a product supplied by S.R. Lifesciences, was not reduced despite a fall in GST rate from 28% to 18%. This, she alleges, violates Section 171 of the CGST Act, 2017, which mandates the passing on of tax reduction benefits to the consumer.
The DGAP’s initial investigation found evidence that could suggest the respondent’s suppliers had not passed on the tax reduction benefits to S.R. Lifesciences, which, in turn, may have prevented the company from passing the benefits on to its buyers. However, the DGAP could not take the investigation to its logical conclusion due to the lack of cooperation from the respondent and his suppliers.
Conclusion: Upon consideration of the DGAP’s report and other case documents, the CCI has directed the DGAP to reinvestigate the matter, specifically focusing on the actions of S.R. Lifesciences’ two suppliers, M/s Shree Suktam Enterprise, Ahmedabad, and M/s Baxium Health Science, Ahmedabad. The CCI has also ordered all parties involved to provide the necessary assistance and documentation for the further investigation, stressing the need for comprehensive evidence to reach a conclusive decision. T
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