TMI Blog2019 (5) TMI 783X X X X Extracts X X X X X X X X Extracts X X X X ..... y acted in contravention of the provisions of the CGST Act, 2017 by issuing incorrect invoices which is an offence under Section 122 (1) (i) of the above Act and hence he is liable for imposition of penalty under the above Section read with Rule 133 (3) (d) of the CGST Rules, 2017 - In the interest of natural justice before imposition of penalty a notice be issued to him asking him to explain why penalty should not be imposed on him. Application disposed off. - Case No. 31/2019 - - - Dated:- 10-5-2019 - SH. B. N. SHARMA, CHAIRMAN, SH. J. C. CHAUHAN, TECHNICAL MEMBER, MS. R. BHAGYADEVI, TECHNICAL MEMBER, SH. AMAND SHAH, TECHNICAL MEMBER Present:- Sh. Mansur M.I., Deputy Commissioner, SGST, Kerala for the Applicant No. 1. She Rana Ashok Rajneesh, Assistant Commissioner for the Applicant No. 2. Ms. Nidhi Dhamija and Sh. Sumesh, Authorised Representives, for the Respondent ORDER 1. The present Report dated 05.12.2018 has been received from the Applicant No. 2 i.e. the Director General of Anti-Profiteering (DGAP) under Rule 129 (6) of the Central Goods Service Tax (CGST) Rules, 2017. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t GST periods, even when the rate of GST was reduced from 28% to 18% ad-valorem and he never enjoyed any additional benefits in respect of his supplies. The Respondent also submitted that along with other suppliers of luggage items he had represented before the Government of India seeking reduction in the GST rate as the tax burden on the industry had increased in the post-GST era as compared to the pre GST era. The Respondent further stated that he had not increased the prices of his products post implementation of GST, since he was hopeful of a reduction in the tax rate and that the reduction in GST rate from 28% to 18%, which came into effect from 15.11.2017, had only corrected the excessive tax burden which was being borne by him. The Respondent also submitted relevant documents, viz. invoice-wise details of outward taxable supplies of the products under investigation, covering the period from October, 2017 to August, 2018 and price lists of the products under investigation (pre and post 15.11.2017) as also his GSTR-1 and GSTR-3B returns for the period July, 2017 to August, 2018. 5. In this Report, the DGAP has reported that investigation was conducted to ascerta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tropic 45 Weekender black 42021250 ₹ 2160.16 ₹ 2403.31 48 18% ₹ 2835.91 ₹ 2548.99 ₹ 286.92 ₹ 13772 Neolite Strolly 53360 VIP FIR 42021220 ₹ 1864.26 ₹ 2022.25 1 18% ₹ 2386.26 ₹ 2199.83 ₹ 186.43 ₹ 186 Neolite Strolly 53360 VIP FIR 42021220 ₹ 1864.26 ₹ 1939.31 2 18% ₹ 2288.39 ₹ 2199.83 ₹ 88.56 ₹ 177 Total ₹ 18887 8. The above Report of the DGAP received on 06.12.2018, was considered by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2019. 11. Supplementary Report was sought from the DGAP on the issues raised by the Respondent vide his submissions dated 01.01.2019 25.01.2019. In response, the DGAP, vide his Report dated 06.03.2019 has reported that the issues raised by the Respondent had already been addressed in para 13 of DGAP Report dated 05.12.2018. 12. The Applicant No. 1 i.e. Kerala State Screening Committee, vide its letter dated 25.01.2019 had observed that the case qualified to be a case of profiteering in terms of Section 171 of CGST Act, 2017 since there was an increase in the base prices of the products supplied by the Respondent when GST rate on the products was reduced from 28% to 18% w.e.f. 15.11.2017. 13. We have carefully considered the Report of the DGAP contention of the Applicant No. 1 and the submissions made by the Respondent as also the documents placed on record to consider whether there was any reduction in the rate of tax in the relevant period and whether the benefit of reduction in the rate of tax was passed on to the recipients as required under Section 171 of the CGST Act, 2017. 14. From the facts of the case and the records pla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 2022.25 1 18% ₹ 2386.26 ₹ 2199.83 ₹ 186.43 ₹ 186 Neolite Strolly 53360 VIP FIR 42021220 ₹ 1864.26 Rs. 939.31 2 18% ₹ 2288.39 ₹ 2199.83 ₹ 88.56 ₹ 177 Total ₹ 18887 We find that the methodology and the profiteered amount calculated by the DGAP, as shown in the above table, is correct and accordingly direct the Respondent to reduce the prices of the above products commensurate with the reduction in the rate of tax to ensure that the benefit is passed on to the recipients. The Respondent is further directed to deposit the profiteered amount of ₹ 18,887/- along with the interest to be calculated @ 18% from the date when the above amount was collected by him from the recipients ..... X X X X Extracts X X X X X X X X Extracts X X X X
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