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TMI Blog2020 (2) TMI 667X X X X Extracts X X X X X X X X Extracts X X X X ..... & Service Tax (CGST) Rules, 2017. The brief facts of the present case are that the Standing Committee on Anti-Profiteering vide the minutes of its meeting held on 11.03.2019 had forwarded an application dated 21.02.2019 filed by the Applicant No. 1, to the DGAP. The Applicant No. 1 had stated in his application that the Respondent had resorted to profiteering in respect of supply of "Xiaomi-Ml Power Bank 2i Red (10000 mAh)" (hereinafter referred as said Power Bank"). The Applicant No. 1 had also alleged that the Respondent had maintained the same selling price for the said 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 01.01.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndent on 09.08.2019. However, the Applicant No. 1 did not avail of the said opportunity. Meanwhile, on the request of the DGAP, the time limit to complete the investigation was extended upto 26.09.2019 by this Authority, vide its order dated 19.06.2019, in terms of Rule 129(6) of the CGST Rules, 2017. 3. The Respondent submitted his replies to the notice issued by the DGAP vide letters and e-mails dated 17.04.2019, 24.04.2019, 29.04.2019, 13.05.2019, 20.05.2019 and 01.08.2019. The submissions of the Respondent made before the DGAP can be summed as follows:- a) With regard 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, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed any benefit on account of reduction in rate of tax on the supplies of the said Power Bank on account of reduction in the GST rate w.e.f. 01.01.2019 and if so, whether he had passed on such benefit to his recipients in terms of Section 171 of the Central Goods and Services Tax Act, 2017. 5. The DGAP has reported that it was evident from the documentary evidence received from the Standing Committee on Anti-profiteering that the price of the said Power Bank as shown in the screenshots had remained the same both before and after 01.01.2019. Further, the Respondent had contended that 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 Responde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the benefit of input tax credit shall be passed on to the recipient by way of commensurate reduction in prices." Therefore, the DGAP has found that the provisions of Section 171 of the Central Goods and Services Tax Act, 2017 are not attracted in the present case. 8. The DGAP has further stated that as the Notice for Initiation of Investigation had been issued to the Respondent on the basis of complaint of the Applicant No. 1 that post rate reduction vide Notification No. 24/2018-Central Tax (Rate) dated 31.12.2018 which came into effect on 01.01.2019, MRP of the said Power Bank had remained unchanged, the ambit of the current investigation was limited to determine if the Respondent had not passed on the benefit of reduction in the GST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the present case, we observe that the allegation of the Applicant No. 1 is that the Respondent had maintained the same selling price in respect of supplies of the said Power Bank before and after coming into force of Notification No. 24/2018-Central 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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