Case Law Details
Director General of Anti-Profiteering Vs Nirma Limited (NAA)
Brief facts of the case:
The present Report dated 15.12.2021 has been received from the Director General of Anti-Profiteering (DGAP) after detailed investigation under Rule 129 of the Central Goods and Services Tax (CGST) Rules, 2017. The brief facts of the case are that a reference was received by the DGAP on 24.01.2020 from the Standing Committee on Anti-profiteering, on the basis of the letter dated 18,04.2019 of this Authority sent to the Standing Committee, to investigate whether the benefit of GST rate reduction in respect of supply of goods, made vide Notification No. 41/2017 (Central Rate) dated 14.11.2017 by the Respondent had been passed on to the recipients by way of commensurate reduction in the prices of the subject goods. It was alleged that the Respondent had not reduced the prices and thus the benefit of GST rate reduction was not passed on to the recipients. Accordingly, an investigation was initiated by the DGAP to collect evidence necessary to determine whether the benefit of GST rate reduction had been passed on by the Respondent to the recipients in respect of supply of subject goods.
2. Thereafter, the DGAP had issued a notice to the Respondent on 07.02.2020, under Rule 129 of the CGST Rules, 2017, asking the Respondent’s reply as to whether he admitted that the benefit of GST rate reduction had not been passed on to the recipients by way of commensurate reduction in prices and if so, to suo moto determine and indicate the same in his reply to the Notice as well as to furnish all supporting documents. Vide the said Notice the Respondent was given an opportunity to inspect the non-confidential evidences/information furnished to him on 13.02.2020 or 14.02.2020., which the Respondent didn’t avail.
3. The DGAP has submitted that in response to the Notice, the Respondent did not submit all the requisite documents by the due date, hence, reminders were issued to the Respondent on 16.03.2020, 30.04.2020, 13.05.2020 & 02.06.2020. The DGAP also stated that the Respondent did not submit requisite documents even after several reminders, therefore, summons under Section 70 of the CGST Act, 2017 read with Rule 132 of the CGST Rules, 2017 were issued on 02.07.2020 to Sh. Vikram Jhala, AGM, Indirect Taxation of the Respondent to submit the relevant documents. The DGAP has further submitted in his report that in compliance of the said summons, the Respondent replied vide e-mail dated 20.07.2020, but did not submit the relevant details/ documents. Hence 2nd summons under Section 70 of the CGST Tax Act, 2017 read with Rule 132 of the above Rules were issued on 27.07.2020 to Sh. Vikram Jhala to submit the required documents.
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