Case Law Details
Miss Neeru Varshney, Vs M/S Lifestyle International Pvt. Ltd. (National Anti-Profiteering Authority)
1. This report dated 02.04.2018 has been received from the Applicant 2 i.e. Director General of Safeguards (DGSG), now re-designated as Director General of Anti-Profiteering (DGAP) under Rule 129 (6) of the Central Goods & Services Tax (CGST) Rules, 2017. The brief facts of the present case are that an application dated 23.11.2017 was filed by the Applicant No. 1 before the Standing Committee constituted under Rule 128 of the above Rules alleging that the Respondent had not passed on the benefit of reduction in the rate of tax after referred to as the product) which she had purchased from him, when the Goods and Services Tax (GST) was reduced from 28% to 18% on this product on 15.11.2017. She had also alleged that she had bought the above product from the Respondent @ Rs. 525/- per unit vide tax invoice No. 1230010554 on 22.11.2017 which included GST @ 18%. She had also claimed that the Respondent had indulged in profiteering in contravention of the provisions of Section 171 of the CGST Act, 2017 and hence appropriate action should be taken against him.
2. The above application was examined by the Standing Committee on Anti-Profiteering and was referred to the DGAP, vide the minutes of it’s meeting dated 29.11.2017 for detailed investigations under Rule 129 (1) of the CGST Rules, 2017.
3. The DGAP had called upon the Respondent to submit his reply on the allegation levelled by the Applicant No. 1 and also to suo moto determine the quantum of benefit which he had not passed on during the period between 15.11.2017 to 31.01.2018 on the product to its The Respondent was also requested to provide copy of the Balance Sheet, GST Returns and details of outward taxable supplies etc. by the DGAP.
4. The Respondent had submitted replies to the notice issued by the DGAP vide his communications dated 12.01.2018, 24.01.2018, 02.2018, 28.02.2018 and 12.03.2018. After examination of the replies submitted by the Respondent the DGAP has informed that the Respondent had contended that the label on the product showed Maximum Retail Price (MRP) of Rs. 550/- and the sale price of the product in the retail sale invoice was shown as Rs. 525/- and that he was not in a position to correlate the invoice with the MRP label as only a part of the MRP label was made available along with the application. The DGAP has further informed that the Respondent had also contended that it was evident that the MRP label of the product provided by the applicant was from the pre-GST stock which was imported in March, 2017 and hence, it did not factor the GST in it’s price. The Respondent had also stated that in respect of the external brands he was dependent on the respective brand owner and the MRP and the retail selling price should have been revised by the brand owners.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
