TMI Blog2019 (3) TMI 429X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore, the allegation of profiteering is not sustainable in terms of Section 171 of the CGST Act, 2017 as there has been no reduction in the rate of tax. There is no merit in the application - application dismissed. - Case No. 14/2019 - - - Dated:- 1-3-2019 - Sh. B. N. Sharma, Chairman, Sh. J. C. Chauhan, Technical Member, Ms. R. Bhagyadevi, Technical Member And Amand Shah, Technical Member Ms. A. Shainamol, Additional Commissioner, SGST, Kerala for the Applicant No. 1. Sh. Anwar Ali T.P., Additional Commissioner for the Applicant No. 2. ORDER 1. The brief facts of the case are that The Kerala State Screening Committee on Anti-Profiteering vide the minutes of its meeting held on 08.05.2018 had referred the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tails of the applicable tax rate and base price (excluding CST or GST) of the said product supplied by the Respondent in the table given below:- Period Pre-GST (prior to 01.07.2017) Post-GST (post 01.07.2017) Description of the product supplied Caribbean Wood Tile Invoice No. Date 2217100715 dated 27.04.2017 4417101296 dated 25.08.2017 MRP Per Box 800 800 Base price (in Rs.) 489.60 468 Excise Duty (12.5% on 40% of MRP) 60 Nil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 31.10.2018. During the hearing, it was observed that the DGAP report had not considered the MRP and base price (excluding VAT) of the product in question. 7. The Authority accordingly vide its letter dated 13.12.2018 had returned the report to the DGAP for re-investigation on the above mentioned issue under Rule 133(4) of the CGST Rules, 2017. 8. The DGAP vide his Report dated 20.12.2018 has submitted that as per Annexure-7 of the minutes of the Kerala Screening Committee dated 08.05.2018, profiteering was alleged against the Respondent, after introduction of GST w.e.f. 01.07.2017. The DGAP has further stated that the Respondent is listed at Sr. no. 77 of Annexure 7 to the minutes of the meeting of State level Screening Committee of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction of GST and whether the provisions of section 171 of CGST Act, 2017, are attracted. Perusal of Section 171 of the CGST Act, 2017, reads as under:- (1). Any reduction in rate of tax on any supply of goods or services or the benefit of input tax credit shall be passed on to the recipient by way of commensurate reduction in prices. 11. On perusal of the facts of the case and the details provided in the table given above in para 4 it is apparent that there was no reduction of tax with the introduction of GST. The DGAP on examining various facts has categorically mentioned that the invoices very clearly show that no VAT was levied and CST was also exempted prior to 01.07.2017. In fact the rate of tax has increased from Central Excis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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