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2020 (2) TMI 667

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..... entral Tax (Rate) dated 31.12.2018 and he had not passed on the benefit of reduction in the GST rate to the Applicant No. 1 and other recipients. In this context, we have perused the screenshots of price of the product on the official web portal of the Respondent as on 19.12.2018 and 03.01.2019 and we observe that the said Power Bank was being classified under the HSN 8507 60 00 and supplies of the said Power Bank, described as “Lithium-ion Batteries”, were being effected in line with entry at S. No. 376AA, of Notification No. 18/2018-Central Tax Rate dated 26.07.2018, whereby the GST being levied @ 18% w.e.f. 26.07.2018. The entry after coming into force of Notification No. 24/2018-Central Tax (Rate) had no effect on the tax ra .....

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..... aid Power Bank despite reduction in the GST rate from 28% to 18% effected vide Notification No. 24/2018-Central Tax (Rate) dated 31.12.2018, which came into force on 01.01.2019 and that the Respondent had not passed on the benefit of this reduction in the GST rate to his recipients by way of commensurate reduction in the price of the Power Bank as envisaged under Section 171 of the CGST Act 2017. The said application was examined by the Standing Committee on Anti-Profiteering, in its meeting held on 11.03.2019, and it had referred the application to DGAP to conduct a detailed investigation in the matter under Rule 129 (1) of the CGST Rules, 2017 to determine whether the benefit of reduction in the rate of tax or ITC had been passed on by th .....

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..... to rate of tax, the Respondent was charging GST 18% before 01 Jan 2019 and continued to charge GST at 18% after 01 January 2019 for the said Power Bank supplied by him, classifying the same under HSN 8507 60 00. He also submitted that amendments effected vide notification No. 24/2018-Central Tax (Rate) dated 31 December 2018 did not lead to any reduction in the rate of tax applicable to the said Power Bank and accordingly the price of the said Power Bank remained unchanged. b) The Respondent said that classification of Power Bank under HSN 8507 60 00 was adopted by him on a conservative basis, although he believed that the impugned product merited classification under HSN 8504 40 90 as a static convertor. He also stated that he had already .....

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..... at anti-profiteering provisions could not be applied to the case as there was no reduction in the rate of tax for the said Power Bank in his case. 6. The Respondent submitted a table as reproduced below (Table A) to the DGAP, highlighting the breakup of the price in respect of his supplies of the said Power Bank in the periods before the date, i.e. 01.01.2019, of coming into force of the amendments effected vide Notification No. 24/2018- Central Tax (Rate) dated 31.12.2018 and after 01.01.2019: Table: A Particulars Before Amendment After Amendment Difference Base Price 761.86 761.86 0 GST Rate 18% 18% 0 GST 137.14 137.14 0 Total 899 899 0 Invoice and Numbers 3535296 and 3559133 3614473 And 3616581 7. From the above Table the DGAP has observ .....

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..... current investigation was limited to determine if the Respondent had not passed on the benefit of reduction in the GST rate on Power Banks, from 28% to 18% w.e.f. 01.01.2019 in terms of Notification No. 24/2018-Central Tax (Rate) dated 31.12.2018 and the scope of investigation did not cover any previous instance of reduction of tax rate including the rate reduction effected vide Notification No. 18/2018-Central Tax (Rate) dated 26.07.2018. 9. Thus, the DGAP concluded that the provisions of Section 171 (1) of Central Goods and Services Tax Act, 2017, relating to profiteering, are not attracted in the present case. 10. Report of the DGAP was received by this Authority on 28.08.2019 and the same was considered in the sitting of the Authority .....

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..... he said Power Bank, described as Lithium-ion Batteries , were being effected in line with entry at S. No. 376AA, of Notification No. 18/2018-Central Tax Rate dated 26.07.2018, whereby the GST being levied @ 18% w.e.f. 26.07.2018. We also observe that the entry after coming into force of Notification No. 24/2018-Central Tax (Rate) had no effect on the tax rate leviable on the said Power Bank, HSN 8507 60 00, being supplied by the Respondent. Hence, we do not find the present case to be a case of profiteering as had been alleged by the Applicant No. 1. The scope of this investigation/proceedings is limited to the issue of profiteering only and not to the issue of classification. 14. In view of the above discussion, we take the view that the a .....

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