2020 (3) TMI 558 - NATIONAL ANTI-PROFITEERING AUTHORITY

Profiteering - supply of Deodorant 'Wild Stone Deo Chrome BX 120 ml' - allegation that the Respondent had not pass on the benefit of reduction in the GST rate - contravention of section 171 of CGST Act - Penalty - HELD THAT:- The profiteered amount is determined as ₹ 21,84,79,790/- in terms of Rule 133(1) of CGST rules, 2017, during the period from 15-11-2017 to 31-03-2019 as has been computed by DGAP - This authority u/r 133(3)(a) of CGST Rules, 2017 orders that the respondent shall reduce his prices commensurately in terms of the rule.

Penalty - HELD THAT:- It is evident that the respondent has denied the benefit of tax deduction to the customers in contravention of provisions of section 171(1) of CGST Act, 2017 and thus has profiteered as per the explanation attached to section 171 of the Act. Therefore, the respondent id apparently liable for imposition of penalty u/s 171(3A) of CGST Act - therefore a SCN should be issued to him to explain why the penalty should not be imposed.

Further, this Authority as per Rule 136 of the CGST Rules 2017 directs the Commissioners of CGST/SGST to monitor this order under the supervision of the DGAP by ensuring that the amount profiteered by the Respondent as ordered by this Authority is deposited in the CWFs of the Central and the State Governments as per the details given above. A Report in compliance of this order shall be submitted to this Authority by the concerned Commissioner within a period of 4 months from the date of receipt of this order.