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2018 (4) TMI 1377 - THE NATIONAL ANTI-PROFITEERING AUTHORITYProfiteering - Reduction on rate of tax post GST - Honda Car having Model No. WR-V 1.2 VX MT (i-VTEC) - whether the rate of tax on the car had been reduced post-GST and if so, whether there was substantial reduction in the rate of tax as had been contended by the applicant and whether the benefit of reduction in rate of tax had been passed on to the applicant? - Held that: - Section 171(1) of the Central Goods and Service Tax, 2017 requiring that "any reduction in rate of tax on any supply of goods or services or the benefit of input tax credit shall be passed on the recipient by way of commensurate reduction in prices" has not been contravened in the present case. The rate of tax both during pre-GST era as well as the post GST era was a matter of fact which has been clearly delineated in detail by the DGSG in his report dated 23.02 2018. It has also been found that the applicant's contention that the pre-GST rate of tax which was 51% was reduced to 29% in post GST era, was factually incorrect as the pre-GST rate of tax, on the car contracted to be purchased by the applicant, was leviable at 31.254% which was rationalized to 29% (CGST-14%+SGST-14%+Cess-1%)thus there was a reduction of only about 2% - the benefit of reduction in the tax rate was passed on to the applicant by way of reduction in the price of the car of base colour by an amount of ₹ 10,550/-. Whether any input tax credit benefit was to be passed on to the applicant by the respondent? - Held that: - the respondent has given details of all the basic components of the price of the car purchased by the applicant as has been mentioned in Table 'B' above and benefit of ₹ 10,550/- on account of reduction of tax by about 2% viz. from 31.254% (pre GST) to 29% (post GST), as discussed above, has already been passed on to the applicant and the amount of ₹ 10,550/- is inclusive of the ITC as has been calculated in Table 'B' - no additional benefit on account of ITC is required to be paid by the respondent. The respondent has not contravened the provisions of Section 171 of the CGST Act, 2017 - application dismissed.
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