State Level Screening Committee on Anti-Profiteering Vs Zeba Distributors (National Anti-Profiteering Authority)
As there was no reduction in the rate of tax on the Eastern Meat Masala, hence the anti-profiteering provisions contained in Section 171(1) of the Central Goods and Services Tax Act, 2017 are not attracted. There is also no increase in the per unit base price (excluding tax) of the above product and therefore the allegation of profiteering is not sustainable.
FULL TEXT OF THE ORDER OF NATIONAL ANTI-PROFITEERING AUTHORITY
1. The present report dated 19.09.2018,has been received from the Applicant No. 2 i.e. The Directorate General of Anti-Profiteering (DGAP) after detailed investigation under Rule 129 (6) of the Central Goods & Service Tax (CGST) Rules, 2017. The brief facts of the case are that The Kerala State Screening Committee on Anti-Profiteering vide the minutes of it’s meeting held on 08.05.2018 had referred the present case to the Standing Committee on Anti-profiteering, alleging profiteering by the Respondent on the supply of “Eastern Meat Masala” (HSN Code 0910), by not passing on the benefit of reduction in the rate of tax at the time of implementation of GST w.e.f 01.07.2017. Thus it was alleged that the Respondent had indulged in profiteering in contravention of the provisions of Section 171 of Central Goods and Service Tax (CGST) Act, 2017 In this regard, The Kerala State Screening Committee had relied on two invoices issued by the Respondent, one dated 06.02.2017 (Pre-GST) and the other dated 18.12.2017 (Post-GST).
2. The above reference was examined by the Standing Committee on Anti-Profiteering and was further referred to the DGAP vide minutes of its meeting dated 02.07.2018 for detailed investigations under Rule 129 (1) of the CGST Rules, 2017.
3. The DGAP has stated in his report dated 19.09.2018 that in the pre-GST era, the applicable Value Added Tax (VAT) on the product “Eastern Meat Masala” was being levied @ 5% and there was no Central Excise Duty as per Central Excise Tariff Act, 1985. In the post GST era the rate of tax was also levied @ 5%. Details of the invoices issued by Respondent are as per the table given below:-
