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2019 (12) TMI 993 - NATIONAL ANTI-PROFITEERING AUTHORITYProfiteering - supply of “Kit Kat 4 Finger 18” - allegation that the Respondent had not passed on the benefit of reduction in the GST rate - contravention of section 171 of CGST Act - penalty - HELD THAT:- On perusal of records, it is clear that 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 reductions of tax given vide Notification No. 41/2017-Central Tax (Rate) dated 14.11.2017 and Notification No. 06/2018 dated 25.01.2018 in respect of the 116 products as per the details given, to his customers and has thus profiteered an amount of ₹ 16,45,559/- therefore, he is liable for action under Rule 133 of the CGST Rules, 2017. Accordingly, a sum of ₹ 16,45,559/- is determined as the profiteered amount in respect of the 116 products including an amount of ₹ 14,62,981/- which has been profiteered in respect of 81 products on which the rate of tax was reduced from 28% to 18% and an amount of ₹ 1,69,379/- on 32 products on which the GST was reduced from 18% to 12% w.e.f. 15.1112017 and 3 products on which the tax rate was reduced from 18% to 12% w.e.f. 25.01.2018, as per the provisions of Rule 133 (1) of the CGST Rules, 2017 - The Respondent is directed to reduce the sale prices of the above products immediately commensurate with the reductions in the rates of tax as were notified on 14.11.2017 and 25.01.2018 respectively and pass on the benefit of reductions in the rates of tax to his customers. Penalty - HELD THAT:- The Respondent has profiteered an amount of ₹ 16,45,559/- as he has not passed on the benefit of tax reductions to his customers. It is also apparent that the Respondent has deliberately and consciously acted in contravention of the provisions of Section 171 (1) of the CGST Act, 2017 and hence he is liable for imposition of penalty under Section 171 (3A) of the above Act read with Rule 133 (3) (d) of the CGST Rules, 2017 - Keeping in view the principles of natural justice, before imposition of penalty, a notice be issued to him asking him to explain why penalty should not be imposed on him under the above provision.
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