TMI Blog2019 (3) TMI 753X X X X Extracts X X X X X X X X Extracts X X X X ..... ot sustainable in terms of Section 171 of the CGST Act, 2017 as there has been no reduction in the rate of tax. Application dismissed - decided against petitioner. - 17/2019 - - - Dated:- 13-3-2019 - Sh. B. N. Sharma, Chairman, Sh. J. C. Chauhan, Technical Member, Ms. R. Bhagyadevi, Technical Member And Sh. Amand Shah, Technical Member For the Applicant : Ms. A. Shainamol, Additional Commissioner, SGST, Kerala, Sh. Anwar Ali T. P. Additional Commissioner ORDER 1. The present Report dated 28.09.2018, has been received from the Applicant No. 2 i.e. The Directorate General of Anti-Profiteering (DGAP) after detailed investigation under Rule 129 (6) of the Central Goods Service Tax (CGST) Rules, 2017. The brief facts of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rate and base price (excluding CST or GST) of the said product supplied by the Respondent in the table given below:- S. No. Description of the Product Pre-GST Post-GST Difference in Price (Rs.) Invoice No./Date Tax Rate (CST) Base Price (Rs.) Invoice No./Date Tax Rate (GST) Base Price (Rs.) 1. Little Stars Dhoti (5-6) (HSN code 63079090 LS9725 dated 09/05/2017 2% 265/- LS54264 dated 24/10/2017 5% 265/- - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. The Authority vide its order dated 12.12.2018 had decided to send the DGAP's report back to him for re-investigation on the above mentioned issue under Rule 133 (4) of the CGST Rules, 2017. 7. The DGAP vide his Report dated 16.01.2019 has submitted that as per the Annexure-7 of the minutes of the Kerala Screening Committee dated 08.05.2018, profiteering was alleged against the Respondent, when the GST was introduced w.e.f. 01.07.2017. The DGAP has further stated that the transactions relied upon in the above annexure were between the manufacturer and the wholesellers or between the wholesellers and the retailers and these transactions had taken place at the prices which wer lower than the MRP. The DGAP has also contended that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pon in is as to whether there was a case of reduction in the rate of tax and whether the provisions of section 171 of CGST Act, 2017 are attracted in the case. Perusal of Section 171 of the CGST Act shows that it provides 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. 10. It is apparent from the perusal of the facts of the case that there was no reduction in the rate of tax on the above product w.e.f. 01-07-2017 and that the rate of tax in the Post-GST era has also been increased from CST @ 2% to IGST @ 5%, therefore, the allegation of profiteering is not sustainable in terms of Section ..... X X X X Extracts X X X X X X X X Extracts X X X X
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