TMI Blog2020 (8) TMI 91X X X X Extracts X X X X X X X X Extracts X X X X ..... . The Respondent is therefore directed to reduce the prices of his products as per the provisions of Rule 133 (3) (a) of the CGST Rules, 2017, keeping in view the reduction in the rate of tax so that the benefit is passed on to the recipients. Accordingly, the Respondent is required to deposit the profiteered amount of ₹ 1,57,200/- along with the interest to be calculated @ 18% from the date when the above amount was collected by him from the recipients till the above amount is deposited in terms of Rule 133 (3) (b) of the CGST Rules, 2017. As per the provisions of Rule 133 (1) of the CGST Rules, 2017 this order was required to be passed within a period of 6 months from the date of receipt of the Report furnished by the DGAP under Rule 129 (6) of the above Rules - This order is being passed today in terms of the Notification No. 55/2020-Central Tax dated 27.06.2020 issued by the Government of India Ministry of Finance (Department of Revenue), Central Board of Indirect Taxes Customs under Section 168 A of the CGST Act, 2017. - Cane No. 42/2020 - - - Dated:- 23-7-2020 - DR. B. N. SHARMA, CHAIRMAN, SH. J. C. CHAUHAN, TECHNICAL MEMBER, SH. AMAND SHAH, TECHNICAL MEMBER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Anti-profiteering examined the aforesaid reference in its meeting and forwarded the same to the DGAP for detailed investigation in terms of Rule 129 of the Rules. 4. The DGAP on receipt of the application issued a Notice under Rule 129 of the CGST Rules, 2017 on 12.07.2019 calling upon the Respondent to submit his reply as to whether he admitted that the benefit of reduction in the GST rate w.e.f. 15.11.2019, had not been passed on to his recipients by way of commensurate reduction in price and if so, to suo moto determine the quantum thereof and indicate the same in his reply to the Notice as well as furnish all documents in support of his reply. The Respondent was also allowed to inspect the non-confidential evidence/information which formed the basis of the said Notice which the Authorised Representative of the Respondent availed of on 23.07.2019. 5. Applicant No. 1 also was allowed to inspect the non-confidential documents/reply furnished by the Respondent, which he did not avail of. The period of the investigation is from 15.11.2017 to 30.06.2019. 6. In response to the Notice dated 12.07.2019, the Respondent submitted his replies vide letters/e-mails dated 22.07.201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 2017, the details of supply of all products were analysed and it was observed that the base prices of most of the products supplied by the Respondent had been increased by him despite the reduction in the tax rate which came into force w.e.f. 15 11.2017. For example, in the case of Duracell Battery, the data of a particular item i.e., DURA-9V/1 sold during the period of 01.11.2017 to 14.11.2017 (pre-GST rate reduction) were taken and an average base price (without GST) was obtained on dividing the total taxable value by total quantity of this item sold during the period of 01.11.2017 to 14.11.2017. The average base price of this item was compared with the actual selling price of this item sold during post-GST rate reduction i.e. on or after 15.11.2017 as has been illustrated in the table given below: Table (Amount in Rupees) Sr.No. Description Factors Pre Rate Reduction (Before 15.11.2017) Post Rate Reduction (From 15.11.2017) 1. Product Description A DU RA-9V/1 2. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r items/types of products would be different from the item as shown in Table above, and accordingly, profiteering has been calculated item-wise. 11. The DGAP has also submitted that the Respondent was requested to reconcile the turnover reported in the GST returns with the turnover of Duracell battery reported in his submissions. The Respondent vide email dated 11.12.2019 submitted HSN wise turnover from November 2017 to March 2017 and informed that the difference in the sale of Duracell battery amounting to ₹ 1,40,880/- had been reconciled in his annual return. 12. The DGAP has observed that perusal of the invoices made available by the Respondent indicated that the Respondent had increased the base price of the product when the rate of GST was reduced from 28% to 18% w.e.f. 15.11.2017. Based on the aforesaid, pre and post-reduction GST rates and the details of outward taxable supplies (other than zero-rated, nil rated and exempted supplies) of the product during the period 15.11.2017 to 30.06.2019, as furnished by the Respondent, the amount of net higher sales realization due to increase in the base price of the impacted good, despite the reduction in the GST rate fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccorded to the parties on 13.01.2020 and 22.01.2020 which were attended by the Respondent. During the course of the hearings, none appeared for the Applicant No. 1 and Sh. Manoj K. Singh, Authorised Representative appeared for the Respondent. 16. The Respondent filed his first written submissions on 11.01.2020 vide which he has accepted the above profiteered amount as computed by the DGAP. The Respondent further requested to convey him the procedure for making payment of the profiteered amount. He also requested not to impose penalty on him. 17. The Respondent filed next written submissions on 22.01.2020 vide which he enclosed (a) Copy of challan of ₹ 98,585/- paid in favour of Deputy Director Consumer Affairs Department, Rajasthan by DD No. 145728 and (b) a copy of Original DD for ₹ 98,585/- paid in favour of Pay Accounts Officer (Consumer Affairs) , payable at New Delhi by DD No. 145729. He had also enclosed the calculation of interest amount computed by him. 18. The documentary evidence regarding payment of the profiteered amount furnished by the Respondent was supplied to the DGAP for verification. The DGAP vide letter dated 19.03.2020 submitted that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en the above amount was collected by him from the recipients till the above amount is deposited in terms of Rule 133 (3) (b) of the CGST Rules, 2017. Since the recipients, in this case, are not identifiable, the Respondent is directed to deposit the amount of profiteering of ₹ 1,57,200/- along with interest in the CWFs of the Central and concerned State Governments as per the provisions of Rule 133 (3) (c) of the CGST Rules, 2017 in the ratio of 50:50 along with interest @ 18% till the same is deposited. 22. The Respondent has made a payment of ₹ 95,585/- through demand draft No, 145728 dated 21.01.2020 into the account of Consumer Affairs Department, Rajasthan and ₹ 95,585/- through demand draft No. 145729 dated 21.01.2020 into the Central Consumer Welfare Fund which has been taken on record. Since the Respondent has paid the entire profiteered amount of ₹ 1,57,200/- along with interest @ 18% of ₹ 39,969/-, thus, he is apparently not liable for imposition of penalty under the provisions of Section 171 (3A) of the CGST Act, 2017. 23. As per the provisions of Rule 133 (1) of the CGST Rules, 2017 this order was required to be passed within a period ..... X X X X Extracts X X X X X X X X Extracts X X X X
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