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2020 (7) TMI 340 - NAPA - GSTProfiteering - restaurant services - allegation that benefit of reduction in GST rate not passed on by way of commensurate reduction in prices - contravention of section 171 of CGST Act - penalty - HELD THAT:- The profiteered amount is determined as ₹ 41,93,431/- as has been computed in Annexure-14 of DGAP's Report dated 27.12.2019 - Accordingly, the Respondent is directed to reduce his prices commensurately in terms of Rule 133(3)(a) of the above rules - Further, since the recipients of the benefit, as determined, are not identifiable, the respondent is directed to deposit an amount of ₹ 41, 93,431/- in two equal parts of ₹ 20,96,715.50 each in the Central Consumer Welfare Fund and the Maharashtra State Consumer Welfare Fund as per the provisions of Rule 133(3)(c) of the CGST Rules, 2017 alongwith interest payable @ 18% to be calculated from the respondent from his recipients till the date of its deposit. The above amount of ₹ 41, 93, 431/- 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 CGST/SGST Commissioners. Penalty - HELD THAT:- The respondent has denied the benefit of tax reduction to the customers in contravention of the provisions of section 171(1) of the CGST Act, 2017 and he has thus resorted to profiteering. Hence, he has committed an offence under section 171 (3A) of the CGST Act, 2017 and therefore he is loable to penal action under the provisions of the section - accordingly, a notice be issued to him directing him to explain why the penalty prescribed under section 171 (3A) of the Act read with Rule 133 (3) (d) of CGST Rules, 2017 should not be imposed on him.
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