Case Law Details
State Level Screening Committee on Anti-Profiteering Vs Ahuja Radios (National Anti-Profiteering Authority)
The DGAP after scrutiny of the above two invoices issued by the Respondent has intimated that there was no increase in the per unit price (excluding GST) in respect of both the products mentioned in the above invoices. The base Price per unit excluding GST remained same at Rs. 625/- and Rs. 545/- respectively for both the products during Pre GST rate revision and Post GST rate revision. The DGAP has finally submitted that while the GST rate was reduced from 28% to 18% w.e.f. 15.11.2017, there was no increase in the per unit price (excluding GST) and hence the allegation of profiteering by the Respondent was not sustainable.
It is apparent from the perusal of the facts of the case that while there was reduction in the rate of tax on the above products from 28% to 18% w.e.f. 15.11.2017, vide Notification no. 41/2017-Central Tax (Rate) dated 14.11.2017, but the base prices (excluding tax) of both the above products had remained the same and hence the allegation of profiteering is not established.
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 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 Kerala State Screening Committee on Anti-Profiteering vide the minutes of it’s 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 “PA Ceiling Speaker BS- 6083T” (HSN Code 85182100), and “PA Wall Speaker WS-661T” (HSN Code 85182100) and by not passing on the benefit of reduction in the rate of tax w.e.f. 15.11.2017 vide Notification No. 41/2017-Central Tax (Rate) dated 14.11.2017, Thus it was alleged that the Respondent had indulged in profiteering in contravention of the provisions of Section 171 of the CGST Act, 2017. In this regard, the Kerala State Screening Committee had relied on two invoices issued by the Respondent, one dated 30.10.2017 (Pre-GST rate revision) and the other dated 04.12.2017 (Post GST rate revision).
Please become a Premium member. If you are already a Premium member, login here to access the full content.
