Case Law Details
Kerala State Level Screening Committee Vs M/s Peps Industries Pvt. Ltd (NAA)
It is apparent from the perusal of the facts of the case that admittedly there was a decrease in the rate of tax on the said product from 28% to 18% w.e.f. 15.11.2017 but it is also established that the base (excluding GST) of the product was also reduced from Rs. 7986/- to Rs. 7,034/- after offering a discount of Rs. 1,006/- which is more than the commensurate rate reduction. As the Net Base Price (excluding tax) of the above product has been reduced by the Respondent, the allegation of profiteering is not sustainable.
FULL TEXT OF ORDER OF NATIONAL ANTI-PROFITEERING AUTHORITY
1. The present Report dated 28.09.2018, has been received from the Applicant No. 2, the Directorate 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 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 Peps Spring Koil Bornell Normal Maroon 75x60x6″ Mattress (HSN Code 94042910), by not passing on the benefit of reduction of GST rate w.e.f. 15.11.2017, vide Notification No. 41/2017-Central Tax (Rate). Thus it was alleged that the Respondent had indulged in profiteering in contravention of the provisions of Section 171 of Central Goods and Service Tax (CGST) Act, 2017. In this regard, The Kerala State Screening Committee had relied on two invoices issued by M/s Peps Industries Pvt. Ltd., dated 09.08.2017(pre-revision) and other dated 30.11.2017(Post-revision).
2. The above reference 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 12 of the CGST Rules, 2017
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