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2024 (2) TMI 413 - COMPETITION COMMISSION OF INDIAProfiteering - supply of “Services by way of admission to exhibition of cinematography films”. - Benefit of tax reduction not passed on section 171 of CGST Act - HELD THAT:- This Commission has carefully gone through the Reports dated 31.12.2020, 03.03.2023 and 30.11.2023 furnished by the DGAP as well as all the other material placed on record and finds that the Respondent has reduced the rate of GST from 28 % to 18% on all categories of tickets w.e.f. 04.02.2019 and hence he has passed on the benefit of rate reduction by charging commensurate prices - The Commission also finds that there is no Exception category tickets and it was a term coined by DGAP in its report dated 31.12.2020. It referred to six specific movies for which application for rate revision was made by the Respondent to the Licensing Authority. The Respondent had sold 'Exception Category' cinema tickets w.e.f. 23.08.2019 only. The Respondent has charged CST @ 18% on the Exception category tickets w.e.f 23.08.2019 and hence no benefit of tax reduction was required to be passed on these tickets. The Commission further finds that the Respondent has increased the base prices of 'Exception' category of tickets after about 6 months w.e.f. 23.08.2019 after he had passed on the benefit of tax reduction w.e.f. 04.02.2019 and further charged GST @ 18%, hence this increase in the base prices does not attract the Anti-Profiteering Provisions. The instant case does not fall under the ambit of Anti-Profiteering provisions of Section 171 of the CGST Act, 2017. Accordingly, the proceedings initiated against the Respondent under Rule 133 (4) of the CGST Rules, 2017 are hereby dropped.
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