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2019 (3) TMI 430 - NAPA - GSTProfiteering - printing cartridges - benefit of reduction in the GST rates not passed on - section 171 of the CGST Act, 2017 - Held that:- It is clear that anyone alleging profiteering can file a complaint. So it is not necessary that the complainant has to purchase the products, Moreover, all the details are available so the question of not considering the compliant do not arise at all. Even the MRP that is manually written happens to be correct MRP as admitted by the respondent. Therefore, the Standing Commitee has rightly forwarded the same the DGAP and the DGAP has accordingly completed its investigation and filed his report. In the present case, we are concerned with the supplier and the supplier is the respondent who has increased the price even after reduction of GST rate of tax. The passing of the benefit by the distributor or retailer does not rest on the fact that the manufacturer or his supplier should have passed on the same benefit to him first - the benefit of reduction of tax has to be necessarily has to be passed on to the recipients. Moreover the DGAP has rightly taken the transaction value of supplier which was the price that was charged by the respondent from his recipients which excluded the impact of discounts. Thus, the respondent is directed to reduce the price of the products as per provisions of Rule 133 (3) (a) of CGST Rules, 2017 by making commensurate reduction in the prices, keeping in view the reduction in the rate of tax. Penalty - Held that:- It has been established that the Respondent has profiteered by increasing his base price. Hence he is liable for penalty under Section 122(1)(i) of the CGST Act, 2017, for issuing incorrect invoices. In the interest of natural justice before imposition of penalty a notice for hearing need to be issued.
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