Case Law Details
Deshpande Constructions (Prop Shri Sunil V. Deshpande) Vs Anutone Acoustics Ltd. (NAA)
The issue to be examined by the Authority is as to whether there was any net benefit of ITC with the introduction of GST. On this issue it has been revealed from the DGAP’s Report that, the Respondent should have reduced the base prices to the extent of the Additional Duty of Customs (referred as CVD) that was no longer to be paid by the Respondent as well as to the extent of the IGST paid at the time of import, the credit of which was now available. This proceeds on the fact that, in the GST period, the Additional Duty of Customs (referred as CVD) is subsumed under the GST and in particular by the IGST to be paid at the time of import. On the one hand, there has been no incidence of the Additional Duty of Customs (referred as CVD) on the goods imported and supplied by the Respondent to the Applicant No. 1, whereas on the other hand such Additional Duty of Customs (referred as CVD) had been subsumed in the IGST paid on such goods by the Respondent and ITC of such IGST was made available for to the Respondent for paymentof IGST on the same goods supplied to the Applicant No. 1. This Authority finds that, the invoices raised by the Respondent to the Applicant No. 1, for the supply of said 04 goods on which IGST @18% was charged by the Respondent show that, the base prices of the goods remained the same, as reflected in the purchase order dated 18.02.2017. The benefit of the ITC of IGST paid at the time of import of the said goods, (the Additional Duty of Customs (referred as CVD) having been subsumed under such IGST) was not passed on to the Applicant No.1. Thus, the Authority finds that, the methodology and procedure adopted by the DGAP for calculation of the amount ‘profiteered’ by the Respondent i.e. equivalent to the Additional Duty of Customs (referred as CVD) that was not payable post GST is appropriate and correct.
The base price was not reduced by the Respondent to the extent of Additional Duty of Customs (referred as CVD) that was not payable post GST.
Further, the DGAP has calculated the amount of ITC benefit to be passed on to Applicant No. 1 during the period 01.07.2017 to 30.09.2019 as Rs.12,79,304/- on the basis of the information supplied by the Respondent and hence the amount of profiteering computed by the DGAP is hereby accepted as correct.
FULL TEXT OF ORDER OF NATIONAL ANTI-PROFITEERING AUTHORITY
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