Director General of Anti-Profiteering Vs Baxium Health Science (Competition Commission of India)
The Director-General of Anti-Profiteering (DGAP) initiated an investigation into Baxium Health Science regarding potential profiteering in the sale of “Eclat Serum 30gm” after the GST rate was reduced from 28% to 18% on 15.11.2017, as per Notification No. 41/2017-Central Tax (Rate). The investigation, prompted by a reference from the Standing Committee on Anti-Profiteering, found that Baxium Health Science had raised its base prices, failing to pass on the benefit of the GST rate reduction to consumers as required under Section 171 of the CGST Act, 2017. Despite multiple notices and submissions from Baxium Health Science, the DGAP’s findings revealed that the company had not fully cooperated, delaying the completion of the investigation. The Competition Commission of India (CCI) has since directed further investigation into Baxium’s suppliers to assess whether the benefit of the GST rate reduction had been passed on through the supply chain. Although Baxium Health Science asserted that the product had been discontinued in 2019, discrepancies in pricing during the investigation period raised concerns of profiteering, leading to further scrutiny.
FULL TEXT OF THE ORDER OF COMPETITION COMMISSION OF INDIA
1. The present Report dated 30.04.2024 has been received from the Director-General of Anti-Profiteering (DGAP) after a detailed investigation under Rule 129 (6) of the Central Goods & Service Tax (CGST) Rules, 2017.
