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2020 (3) TMI 557 - NAPA - GSTProfiteering - supply of “Bajaj Majesty MX 20 Steam Iron” - allegation that the benefit of reduction in the GST rate not passed on - contravention of Section 171 of the CGST Act - HELD THAT:- The allegation of Applicant No. 1 is that the Respondent had increased the MRP of the said product from ₹ 1099/- to ₹ 1405/- or ₹ 1520/- in respect of supplies of the said product and after coming into force of Notification No. 18/2018-Central Tax (Rate) dated 27.07.2018 and he had not passed on the benefit of reduction in the GST rate to the recipients. In this context, we have perused the invoices of the product dated 06.07.2018 and 03.08.2018, and we observe that the base price of the product was kept unchanged same by the Respondent despite the reduction in the rate of tax and that he did not increase the base price after coming into force of Notification No. 18/2018-Central Tax (Rate) dated 27.07.2018. The MRP of ₹ 1099/- shown on the screenshot, pertained to the stock of the goods carrying an MRP of ₹ 1099/-, which was lying with the Respondent and that the Respondent has himself stated that once the old stock was liquidated, the MRP of ₹ 1520/- was updated on the website. But since the new stock carrying the MPR of ₹ 1520/- had already circulated in the market, the website of the Respondent showed MRP of ₹ 1099/- till July, 2018 - the Applicant No. 1, vide his email dated 30.09.2019, has also agreed with the DGAP's conclusion recorded in his Report dated 06.09.2019. The present case is not a fit case of profiteering as had been alleged by the Applicant No. 1 - the allegation of the Applicant No. 1 is not tenable and therefore the application alleging violation of provisions of Section 171 of the CGST Act, 2017 is hereby dismissed.
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