Case Law Details
Sh. Vikas Goyal Vs Piccadilly Square Movie Complex (NAA)
In this case Respondent did not commensurately reduce the price of the tickets despite reduction in the GST rate from 28% to 18% and from 18% to 12% respectively. The Respondent vide his various submissions has also not opposed the said fact of not reducing the prices in commensurate manner after reduction of tax rate and profiteering calculation and has agreed to deposit the profiteered amount, though he has raised certain objections. In view of the facts mentioned in the DGAP Report, the Authority find that the Respondent has contravened provisions of section 171 of the CGST Act, 2017 and the Authority agrees with the profiteering amount calculated by the DGAP.
The Respondent has also requested that the payment of alleged profiteering may be allowed in monthly instalments, without imposition of interest in this regard. He has also quoted the case of Samsung India Electronics (P.) Ltd. v. Union of India and Gaurav Sharma Food Industries Vs Union of India & Ors. The above quoted orders are interim orders and are yet to attain finality and are pending before the court of law. Further, the facts of present case are different from the above-referred case and hence they are not applicable. There are no specific provisions in the CGST Act or rules, which provide for payment of determined profiteered amount in instalments.
In view of the above facts, it is evident that the Respondent did not reduce the base prices of five categories of tickets in commensurate manner for the period from 01.01.2019 to 18.07.2019 and four categories for the period from 19.07.2019 to 31.01.2020 and has contravened the provisions of section 171 of the CGST Act. This Authority determines the profiteered amount as Rs. 9,74,638/- and Rs. 2,32,112/- for the period 01.01.2019 to 18.07.2019 and 19.07.2019 to 31.01.2020 respectively. Therefore, the total amount of profiteering covering the period of 01.01.2019 to 31.01.2020 is determined as Rs.12,06,750/49,74,638 + 2,32,112).
The Authority determines the total amount of profiteering as Rs. 12,06,750/- as per the provisions of Rule 133 (1) of the above Rules as has been computed vide above Table- B and Table- D. Accordingly, the Respondent is directed to reduce his prices commensurately in terms of Rule 133 (3) (a) of the above Rules. The Respondent is also directed to deposit an amount of Rs. 12,06,750/- in the Consumer Welfare Fund of the Central and the State Government in the ratio of 50:50, as per the provisions of Rule 133 (3) (c) of the above Rules along with 18% interest payable from the dates from which the above amount was realised by the Respondent from his recipients till the date of its deposit. The above amount shall be deposited within a period of 3 months from the date of passing of this Order failing which it shall be recovered by the concerned Commissioners CGST/SGST.
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