Kerala State Screening Committee on Anti-profiteering Vs M/s. Asian Paints Ltd. (National Anti-Profiteering Authority)
From the invoices referred, it is evident that the Respondent had maintained the same base price post reduction in the rate of tax w.e.f. 15.11.2017, resulting in reduction in the cum-tax price from Rs. 175.40/- to Rs. 161.70/- on the product ‘Paint (AP Woodtech Wood Stain Walnut 500 ml (HSN Code 3213))’. Since the benefit of tax reduction has been passed on by the Respondent by commensurate reduction in his price, therefore, the Respondent cannot be held guilty under Section 171 of the above Act.
FULL TEXT OF ORDER OF NATIONAL ANTI-PROFITEERING APPELLATE AUTHORITY
1. The present Report dated 28.09.2018, 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 (CGST) Rules, 2017. The brief facts of the case are that the Applicant No. 1, 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 “Paint (AP Woodtech Wood Stain Walnut 500 ml (HSN Code 3213))” (here-in referred to as the product), by not passing on the benefit of reduction in the rate of tax of GST w.e.f. 15.11.2017. In this regard, the Applicant No. 1 had relied on two invoices issued by the Respondent, one dated 08.11.2017 (Pre-GST rate reduction) and the other dated 28.11.2017 (Post-GST rate reduction).
2. The above application was examined by the Standing Committee on Anti-Profiteering and was further 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 had stated in his Report dated 28.09.2018 that vide Notification No. 41/2017-Central Tax (Rate) dated 14.11.2017, the rate of GST was reduced from 28% to 18% on the above product. He has also stated that the Respondent had reduced the selling price (including GST) of the above product from Rs. 175.40/- to Rs. 161.70/-, by maintaining the base price of Rs. 137.03/- (after discount) and charging GST at the lower rate of 18% on the said price. He has also furnished the pre and post rate revision invoice-wise details in the table given below:-
Table
