Home Case Index All Cases GST GST + NAPA GST - 2019 (4) TMI NAPA This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (4) TMI 1244 - NATIONAL ANTI-PROFITEERING AUTHORITYProfiteering - supply of “Snacks” - benefit of reduction in the rate of tax not passed on - contravention of the provisions of Section 171 (1) of the CGST Act, 2017 - Penalty - HELD THAT:- The claim of the Respondent that he could not have reduced his prices after the tax reduction due to stiff competition from other exempted and compounding manufacturers, resistance from his customers, increase in the raw material and transportation costs and he was providing robust profit margins and discounts to his dealers cannot be accepted as the present proceedings are only concerned with ascertaining whether the Respondent had passed on the benefit of rate reduction to his customers or not and have no concern with the above factors mentioned by him. The commensurate benefit of tax reduction was required to be passed on by him by reducing his prices irrespective of the above factors, which he had failed to do. It is also on record that the Respondent vide his written submissions dated 16.01.2019 has asked for permission to remit the profiteered amount in three instalments. Therefore, there is absolutely no doubt that the Respondent has resorted to profiteering and has not passed on the benefit of tax reduction to his customers. The Respondent has indulged in profiteering in violation of the provisions of Section 171 (1) of the CGST Act, 2017 and has not passed on the benefit of reduction in the rate of tax as per the Notification No. 34/2017-Central Tax (Rate) dated 13.10.2017 supra in respect of the products being supplied by him to his customers and therefore, he is liable for action under Rule 133 of the CGST Rules, 2017. Respondent has acted in contravention of the provisions of Section 171 (1) of the CGST Act, 2017 and has not passed on the benefit of reduction in the rate of tax to his recipients by commensurate reduction in the prices. Accordingly, the amount of profiteering is determined as ₹ 12,76,306/- as per the provisions of Rule 133 (1) of the CGST Rules, 2017. The Respondent is directed to deposit the profiteered amount of ₹ 12,76,306/- along with the interest to be calculated @ 18% from the date from which the above amount was collected by him from the recipients till the above amount is deposited - Since the recipients in this case are not identifiable, the Respondent is directed to deposit the amount of profiteering of ₹ 6,38,153/- in the Central Consumer Welfare Fund (CWF) and ₹ 6,38,153/- in the Kerala State CWF as per the provisions of Rule 133 (3) (c) of the CGST Rules, 2017, along with 18% interest. Penalty - HELD THAT:- The Respondent has deliberately and consciously acted in contravention of the provisions of the CGST Act, 2017 by issuing incorrect tax invoices which is an offence under Section 122 (1) (i) of the above Act and hence he is liable for imposition of penalty under the above Section read with Rule 133 (3) (d) of the CGST Rules, 2017 - A notice has already been issued to him on 10.12.2018 to show cause why penalty should not be imposed upon him. However, no detailed submissions have been filed by him on the issue of penalty. Therefore, keeping in view the principles of natural justice a fresh notice be issued to him before imposition of penalty. Application disposed off.
|