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2022 (8) TMI 530 - NAPA - GSTProfiteering - Sanitary Napkin - allegation is that the Respondent did not pass on the benefit of exemption of GST on Sanitary Napkin by way of commensurate reduction in price - contravention of of Section 171 of the Central Goods & Service Tax Act - penalty - HELD THAT:- The Authority determines that the Respondent have profiteered by an amount of Rs. 2096/- as has been computed in Annexure – 21 of the DGAP report for exemption of GST w.e.f. 27.07.2018 and had not been passed on to his Recipients by way of commensurate reduction in prices of “Sanitary Napkins” during the period of investigation i.e. 27.07.2018 to 31.10.2020. Further, since the recipients of the benefit, as determined, other than the Applicant, are not identifiable, the Respondent is directed to deposit an amount of Rs. 2,094/- in two equal parts of Rs. 1047/-each in the Central Consumer Welfare Fund and the Uttar Pradesh Consumer Welfare Fund as per the provisions of Rule 133 (3) (e) of the CGST Rules 2017, along with interest payable @ 18% to be calculated from the dates on which the above amount was realized by the Respondent from, his recipients till the date of its deposit in the said fund. The Respondent is also directed to whim/pass on the benefit of Rs. 1.78 along with interest @18% as prescribed to the Applicant. Penalty - HELD THAT:- The Respondent has denied the benefit of exemption of GST w.e.f. 27.07.2018 on Sanitary, Napkins Section to the customers in-contravention of the provisions of Section 171 (1) of the CGST Act, 2017 and he has thus committed an offence Under Section 171 (3A) of the Act and therefore, he is liable for imposition of penalty under the provisions of the above Section. Section 171 (3A) of the CGST Act, 2017 has been inserted in the CGST Act, 2017 vide Section 112 of the Finance Act, 2019, and the same became operational w.e.f. 01.01.2020. As the period of investigation was 27.07.2018 to 31.10.2020, therefore, the Respondent is liable for imposition of penalty under the provisions of the above Section. Accordingly, notice be issued to him to explain why penalty as prescribed under Section 171 (3A) should not be imposed him. This Order having been passed today falls within the limitation prescribed under Rule 133(1) of the CGST Rules, 2017.
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