Home Case Index All Cases GST GST + NAPA GST - 2018 (12) TMI NAPA This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (12) TMI 135 - NAPA - GSTPenalty - Profiteering - benefit of reduction in the price granted - Section 122 (1) (i) of the CGST Act, 2017 - Held that:- The Respondent has deliberately acted in defiance of the above law and hence he is guilty of the conduct which is contumacious and dishonest. He has further acted in conscious disregard of the obligation which was cast upon him by the law, by issuing incorrect invoice in which the base price was deliberately not reduced by the amount of CVD, SAD and CST chargeable under erstwhile scenario which is now chargeable as IGST in the GST regime and is available as ITC benefit and thus he had denied the benefit of reduction in the price granted vide IGST provisions to his customers. Accordingly he has committed an offence under Section 122 (1) (i) of the CGST Act, 2017. The notice regarding imposition of penalty has already been issued to the Respondent on 11.09.2018. However, the Respondent has not furnished any reply or advanced any arguments on the quantum of penalty to be imposed on him. Keeping in view the principles of natural justice, opportunity of being heard has to be given to the Respondent before the penalty is imposed. Hence fresh notice be given to him to explain why penalty should not be imposed on him. It is clear that the Respondent did not pass on the benefit arising out of the increased ITC in the case of the subject transaction - the possibility of the Respondent having profiteered and thus unfairly benefited in the similar manner, in case of the other supplies affected by him to other customers, cannot be ruled out. We unequivocally opine that a fresh investigation by the DGAP covering all products supplied by the Respondent, within the confines of Section 171 of the CGST Act, is merited to unearth and quantify the benefit that the Respondent has failed to pass on to his customers - The DGAP is directed to initiate investigation against the Respondent in this regard.
|