Case Law Details
Principal Commissioner Vs Krishna Enterprises (Competition Commission of India)
Introduction: The Competition Commission of India recently addressed an anti-profiteering case involving Principal Commissioner Vs Krishna Enterprises. The case revolves around the imposition of penalties under Section 171(3A) of the Central Goods & Service Tax (CGST) Rules, 2017, specifically pertaining to the period before 01.10.2010.
Detailed Analysis: The investigation, initiated by the Director-General of Anti-Profiteering (DGAP), stemmed from an application filed by a concerned party. Allegations were made against Krishna Enterprises, stating that they did not pass on the benefit of a GST rate reduction on admission tickets to cinematography films. The reduction occurred from 18% to 12% starting on 01.01.2019, as per Notification No. 27/2018-Central tax (Rate) dated 31.12.2018.
The Applicant argued that Krishna Enterprises increased base prices to maintain the same cum-tax selling price, resulting in alleged profiteering. The investigation covered the period from 01.01.2019 to 30.09.2019.
Despite repeated notices, the Respondent did not fully cooperate, leading to summons and partial document submissions. The DGAP’s analysis focused on the discrepancy between pre and post-GST rate reduction ticket prices, concluding that the benefit was not passed on.
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