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TMI Blog2019 (4) TMI 1715X X X X Extracts X X X X X X X X Extracts X X X X ..... o. 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 facts of the case are that the Applicant No. 1 vide the minutes of its meeting held on 08.05.2018 had referred the present case to the Standing Committee on Anti-profiteering, alleging profiteering by the Respondent on the supply of "BWP Trozan Platinum Ply 19 mm 2.44x1.22" (here-in referred to as the product) by not passing on the benefit of reduction in the rate of tax at the time of implementation of the Goods and Services Tax (GST) w.e.f 01.07.2017 and also when the GST rate was reduced from 28% to 18% w.e.f. 15.11.2017 vide Notification No. 41/2017-Central Tax (Rate) da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e (GST) Discounted Base price per M2 excluding GST 1 BWP Trozan Platinum Ply 19 mm 2.44x1.22 (HSN code 44123190) 99 dated 04/05/2017 28.81 (12.5 Central Excise Duty and 14.5% VAT 1028.07 (without any discount) 115 dated 9/08/2017 28% 1021.73 (with 17.05% discount) - 7.34 After scrutiny of the above two invoices issued by the Respondent, the DGAP has reported that after implementation of the GST w.e.f. 01.07.2017, whilst the applicable tax rate on the product was reduced from the existing rate of 28.81% to 28%, the Respondent had reduced the per unit base price of the product (excluding tax) from Rs. 1028.07 to Rs. 1021.73. 4. The DGAP has also reported that on scrutiny of the two invoices dated 09.08.2017 (Pre rate revision) an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there was a reduction in the per unit base price (excluding tax) in the post-GST era as compared to the pre-GST era and when the GST rate was reduced from 28% to 18% w.e.f 15.11.2017, the per unit base price (excluding GST) had remained the same at Rs. 1021.73, there has been no contravention of the above Section. 6. The DGAP has also submitted that in this case, the allegation was that the benefit of reduction in the tax rate was not passed on to the recipients by the Respondent at the time of implementation of the GST and also when the GST rate was reduced from 28% to 18% w.e.f 15.11.2017, vide Notification No. 41/2017-Central Tax (Rate) dated 14.11.2017. He has however stated that there was a decrease in the per unit base price (excludi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 02.02.2019, received by the Authority on 04.02.2019 has submitted that the base price of the product was Rs. 1028.07 per square meter in the invoice dated 24.05.2017 and the price of the product was reduced to Rs. 1021.73 in the invoice dated 09.08.2017 after giving a discount of 17.05% on the base price of Rs. 1231/- per square meter (discount of Rs. 90,572/- was given on the total invoice value of Rs. 5,31,125,41 @ 17.05%). The DGAP has also submitted that the price of the product had remained Rs. 1021.73 in the invoice dated 02.12.2017 after giving a discount of 17.05% on the base price of Rs. 1231/- per square meter (discount of Rs. 6249/- was given on the total invoice value of Rs. 36646.87 @ 17.05%) and hence, there was no increase ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 6249/- was given on the total invoice value of Rs. 36,646.87 @ 17.05%) Thus, it is apparent that the Respondent did not increase the per unit base price (excluding GST) of the product, which was Rs. 1028.07 in the pre-GST era. Further, it was reduced to Rs. 1021.73 in the post-GST era w.e.f. 01.07.2017 and it also remained at Rs. 1021.73 when the GST rate was reduced from 28% to 18% w.e.f. 15.11.2017 and hence, there was no increase in the per unit base price. Therefore, the allegation of profiteering is not sustainable in terms of Section 171 of the CGST Act, 2017. As such, we do not find any merit in the application filed by the above Applicants and the same is therefore dismissed. 12. A copy of this order be sent to both the Applica ..... X X X X Extracts X X X X X X X X Extracts X X X X
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