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Asian Radhika Multiplex guilty of profiteering under GST: CCI

Case Law Details

TaxGuru Citation
2024 taxguru.in 3360
Case Name
Sh. Hrushrxesh Vs Asian Radhika Multiplex (Competition Commission of India)
Date of Judgement/Order
Only available for paid members
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Sh Hrushrxesh Vs Asian Radhika Multiplex (Competition Commission of India)

Based on the data submitted, the DGAP found that the respondent had maintained the cum-tax price of movie tickets at Rs. 130 even after the GST rate reduction. Detailed computations revealed a profiteering amount of Rs. 88,67,790 during the period from January 2019 to April 2020. The investigation assessed compliance with Section 171 of the CGST Act, 2017, which mandates the passing on of GST rate reduction benefits to consumers. It concluded that the respondent had contravened this provision.

Further, since the customers/ recipients, in this case. are not Identifiable, DGAP direct the Respondent to deposit the profiteered amount of Rs. 88,67,790/-along with the interest to be calculated @ 18% from the date when the above amount was collected by him from the recipients till the above amount is deposited, in two equal parts. in the Central Consumer Welfare Fund and the Telangana State Consumer Welfare Fund as per provisions of Section 171(1) read with Rule 133 (3) (o) of the CGST Rules, 2017. The above amount shall be deposited by the Respondent within a period of 3 months from the date of receipt of this Order failing which the same shall be recovered by the Commissioner CGST/SGST as per the provisions of the relevant CST Act,2017

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