Kerala State Screening Committee on Anti-profiteering Vs M/s Emke Silks & Garments Pvt. Ltd. (NAA)
DGAP has submitted in its report that the rate of tax on the product Trousers (Denim Jeans Design 899) had remained the same in the pre-GST and the post- GST era. Moreover, the pre-GST and post-GST base prices (excluding tax) had also remained the same. Therefore, the provisions of Section 171 of the CGST Act, 2017 have not been contravened and the allegation of profiteering by the Respondent was not established.
FULL TEXT OF ORDER OF NATIONAL ANTI-PROFITEERING AUTHORITY (NAA)
1. The present report dated 08.11.2018 has been received from the Directorate General of Anti-Profiteering (DGAP) after detailed investigation under Rule 129 (6) of the Central Goods & Services Tax (CGST) Rules, 2017. The brief facts of the case are that the Kerala State Screening Committee on Anti-profiteering, vide the minutes of its 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 “Trousers” (Denim Jeans Design 899), by not passing on the benefit of reduction in the rate of tax at the time of implementation of the GST w.e.f. 01.07.2017. It was alleged that the Respondent had indulged in profiteering in contravention of the provisions of Section 171 of CGST Act, 2017. In this regard, the Kerala State Screening Committee has relied on two invoices issued by the Respondent, one dated 29.04.2017 (Pre-GST) and the other dated 12.09.2017 (Post-GST).
2. The above application was examined by the Standing Committee on Anti-Profiteering and was 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 08.11.2018 that the “Trousers” (Denim Jeans Design 899) (HSN Code 62034200), were exempted from Central Excise Duty, vide Notification No. 30/2004-CE dated 09.07.2004 and attracted only VAT @ 5%. After implementation of the GST w.e.f. 01.07.2017, the tax on the above product was fixed @ 5%. The pre-GST & the post-GST sale invoice-wise details of the applicable tax rates and the base prices (excluding VAT or GST) of the said product supplied by the Respondent are mentioned in the table below:-
Table
