TMI Blog2019 (5) TMI 358X X X X Extracts X X X X X X X X Extracts X X X X ..... no relevance in view of the fact that there has been no reduction in the rate of tax nor increased benefit on account of Input Tax Credit was available and hence the provisions of Section 171 of CGST Act, 2017 can not be invoked in this case. it is clear that there is no case of contravention of the provisions of Section 171 of the CGST Act, 2017 and hence we find no merit in the application filed by the above Applicant . Application dismissed. - Case No. 27/2019 - - - Dated:- 2-5-2019 - SH. B. N. SHARMA, CHAIRMAN, SH. J.C. CHAUHAN, TECHNICAL MEMBER, MS. R. BHAGYADEVI, TECHNICAL MEMBER SH. AMAND SHAH, TECHNICAL MEMBER Present:- None for the Applicant No. 1 Sh. Anwar Ali T.P. Additional Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Respondent alongwith his application. 2. The above application was examined by the Standing Committee on Anti-profiteering and thereafter, vide the minutes of its meeting dated 02.05.2018, the Standing Committee on Anti-profiteering had referred it to the DGAP for detailed investigation under Rule 129 (1) of the CGST Rules, 2017. 3. On the basis of investigation, the DGAP has reported that a notice was issued to the Respondent on 18.05.2018 to submit his reply onthe allegation levelled by the Applicant No. 1 and to suo-moto determine the quantum of benefit on account of GST implementation which he had not passed on to his service recipients after implementation of GST. The Respondent was also requested to furnish do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vide Notification No. 11/2017Central Tax (Rate) dated 28.06.2017, which was higher than the pre-GST rate of Tax leviable on courier services. 3(b). The DGAP, also found that in the tax regime prior to implementation of GST, for discharging their Service Tax liability, the Respondent was availing the credit of Service Tax paid by him on the input services utilized by him and using the same for discharging his Service Tax liability in the course of providing courier service. Further, in the period after 01.07.2017, the Respondent had also become eligible to avail input tax credit of GST paid on all the goods and services used by him for supplying courier service. Hence, there was no change in the benefit of input tax credit after imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re of inflation and the transportation expenses on account of petrol and diesel. Hence, he had resorted to increase in the rate of Courier Services in July 2017, for which, prior intimation was circulated to his respective centres/offices. 5. The Second hearing was held on 10.09.2018, wherein Applicant No. 1 was not present while Applicant No. 2 was represented by Sh. Anwar Ali T.P., Additional Commissioner, Sh. G. Suresh, Coordinator, Sh. Jaychandran V., Manager (Finance and Accounts) and Sh. S.M. Singh, Consultant appeared on behalf of the Respondent. The Respondent contended that they had increased the base price from ₹ 69.50 to ₹ 80.00 due to increase in operational costs, establishment expenses, inflation, manpow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... espondent was availing input tax credit in respect of inputs, capital goods and input services during both the pre-GST and the post-GST regimes. Therefore, there had been no additional benefit of input tax credit available to the Respondent after implementation of GST w.e.f. 01.07.2017. The DGAP has further submitted that in the Pre-GST regime, the Service Tax on courier service was leviable @ 15% and after the implementation of GST w.e.f. 01.07.2017, GST had become leviable on such service vide Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, which was 3% higher than the Pre-CST rate of Service Tax. 8. The Authority in its sitting held on 21.02.2019 decided to hear the Applicants and the Respondent on 07.03.2019. But ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed his base price for providing courier service from ₹ 69.5/- to ₹ 80/- has no relevance in view of the fact that there has been no reduction in the rate of tax nor increased benefit on account of Input Tax Credit was available and hence the provisions of Section 171 of CGST Act, 2017 can not be invoked in this case. 12. Based on the above facts it is clear that there is no case of contravention of the provisions of Section 171 of the CGST Act, 2017 and hence we find no merit in the application filed by the above Applicant No. 1 and the same is accordingly dismissed. 13. A copy of this order be sent to both the Applicants and the Respondent free of cost. File of the case be consigned after completion. - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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