Sh. Samit Chakraborty Vs Cloudtail India Pvt. Ltd. (NAA)
The Authority finds that the DGAP has correctly calculated the profiteered amount as Rs. 9,84,354/- (Rs. 5,37,208/- on closing stock & Rs. 4,47,146/- on fresh stock) as mentioned in Table-A above, which was to be passed on to the buyers of the impugned item by way of commensurate reduction in the prices in terms of Section 171 (1) of the CGST Act, 2017 during the above period, by the Respondent. Further, it is also observed that the Respondent vide his letter dated 27.04.2022, has submitted that he is ready to pay the profiteered amount as calculated by the DGAP in his above said Report dated 31.12.2020.
As per the above discussion and findings, this Authority as per the provisions of Section 171 of the CGST Act, 2017, determines the profiteered amount as Rs. 9,84,354/- for period from 27.07.2018 to 30.03.2019 by the Respondent. The Authority finds that such amount needs to be passed on by the Respondent alongwith interest © 18% as prescribed to the recipients of supply/customers other than the Applicant No. 1 as the profiteering in respect of the Applicant No. 1 has been found to be Nil as per the DGAP Report dated 24.09.2019. As the recipients other than the Applicant No. 1, of such supply are not identifiable, the Authority directs that, the Respondent shall deposit the said amount with interest in the Consumer Welfare Funds (CWP) of the Central and State Governments as prescribed under Rule 133 (3)(c) of the CGST Rules 2017, within three months of the date of this order, failing which such amount will be recovered under the provisions of CGST Act 2017.
The Respondent shall deposit an amount of Rs. 4,92,177/- alongwith Interest @ 18% as prescribed under Rule 133 (3)(b) of CGST Rules 2017 in the CWF of the Central Government and the amount tabulated below alongwith interest @18% prescribed in the CWF of the State/UTs.
FULL TEXT OF ORDER OF NATIONAL ANTI-PROFITEERING AUTHORITY
1. The present report dated 31.12.2020, has been received from the Applicant No. 2 i.e. the Director General of Anti-Profiteering (DGAP) after detailed investigation under Rule 129 (6) of the Central Goods & Service Tax Rules, 2017 pursuant to National Anti-Profiteering Authority’s (NAA) Interim Order No. 15/2020 dated 20.4.2020 under Rule 133(4) of the Rules, 2017, which directed as follows:-
i. The issues of common input tax credit shall be investigated by the DGAP and a detailed Report shall be submitted accordingly.
ii. The claim made by the Respondent of reversal of common credit of Rs. 13,07,118/-, shall be verified by the DGAP as per the provisions of Section 17(2) of the CGST Act, 2017 read with Rule 42 of the CGST Rules, 2017 and his findings shall be recorded in the Report.
iii. The issue of benefit of discounts shall be examined by the DGAP in terms of Section 15(3) of the CGST Act, 2017 as per details submitted by the Respondent and a detailed Report shall be filed by him in this regard.
iv. The profiteered amount shall be again computed by the DGAP on the closing and the fresh stocks separately and mentioned in his Report.
2. The brief facts of the case are that the Applicant No. 1 vide his complaint had alleged that the Respondent had not passed on the benefit of reduction in tax rate from 12% to Nil in the light of Notification No. 19/2018-CTR dated 26.07.2018 w.e.f. 27.07.2018 on the purchase of Stayfree Sanitary Napkins. The said complaint was examined by the Standing Committee on Anti-Profiteering in its meeting held on 27.03.2019 and forwarded to the DGAP for detailed investigation in the matter. On receipt of said reference from the Standing Committee on Anti-Profiteering, the DGAP had investigated the aforesaid matter and submitted his Report dated 24.09.2019 concluding that the Respondent had increased the base price of product “Stayfree Sanitary Napkin” when the tax rate was reduced from 12% to 0% (Nil) w.e.f. 27.07.2018 by the Central Government therefore he was additionally benefitted to amount of Rs. 19,61,033/- during the period from 27.07.2018 to 31.03.2019 and this amount was to be passed on by the Respondent to the buyers of this product under the provisions of section 171 of the CGST Act 2017. This Authority after careful consideration of the aforesaid DGAP’s Report dated 24.09.2019, submissions of the Respondent and other documents placed on record, had sent the matter back vide Interim Order (1.0.) No. 15/2020 dated 20.04.2020 under Rule 133(4) of the CGST Rules 2017 on the grounds mentioned in paragraph 1 above.
3. Accordingly, the DGAP had investigated the above issues and furnished his Report dated 31.12.2020 wherein the DGAP has submitted;
i. That after receipt of the aforesaid Order from this Authority, a letter dated 04.06.2020 and reminder dated 22.06.2020 were issued to the Respondent calling for following documents:
