9911796707
TMI Blog2022 (9) TMI 1532X X X X Extracts X X X X X X X X Extracts X X X X ..... eriod 15-11-2017 to 31-3-2018. The Authority vide his Order no. 25/2018 dated 27-12-2018 had determined the profiteered amount as Rs. 3,43,109/- and further, directed the DGAP to further investigate the quantum of profiteering for the period subsequent to 31-3-2018. 2. The DGAP in his report dated 25-1-2021 had inter alia, stated that: a. The DGAP vide his Report dated 8-8-2018, furnished to the Authority under rule 129 (6) of the Central Goods & Services Tax (CGST) Rules, 2017, had conducted an investigation and found that the Respondent had not passed on the benefit of reduction in the rate of tax to the customers by way of commensurate reduction in the price of the product sold by him as per the provisions of section 171 (1) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... report accordingly. Hence, for the compliance of the same, letter dated 7-1-2019 was issued to M/s. Raj & Company to submitted details. f. The period covered by the current investigation was from 1-4-2018 to 31-12-2018. g. The Respondent submitted his replies to the said Notice, vide letters and e-mails dated 14-1-2019, 5-4-2019, 28-8-2020, 21-9-2020, 25-9-2020, 10-10-2020, 16-10-2020, 5-11-2020, 20-11-2020, 21-12-2020, 23-12-2020, 29-12-2020 & 1-1-2021. h. Vide the aforementioned e-mails/letters, the Respondent submitted the following documents/information: i. Details of invoice-wise outward taxable supplies from 1-4-2018 to 31-12-2018 for all products impacted by GST rate reduction w.e.f. 15-11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... profiteering, an illustration was given in the Table below, in which the calculation in respect of a specific item Le. LP HEX 6 OIL SHAMPOO 360 ML sold during the month of November, 2017 (pre GST rate reduction) was taken. The average base price of the said product was obtained by dividing the total taxable value with total quantity of this item sold during the period 1-11-2017 to 14-11-2017. The average base price of this item was then compared with the actual selling price of the same item sold post-GST rate reduction i.e. on or after 1-4-2018 as illustrated in the table below: Sl. No. Description Factors Pre Rate Reduction (From 1-11-2017 to 14-11-2017) Post Rate Reduction (From 15-11-2017 onwards) 1 Product Description A LP H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ils submitted by the Respondent, 201 products were sold in the period from 1-7-2017 to 14-11-2017. The total amount of profiteering with respect to these 201 products for the period 1-4-2018 to 31-12-2018, comes to Rs. 3,31,879/-. m. In this case, the allegation of the Applicant No. 1 was that the base prices of the subject goods were increased when there was a reduction in the GST rate from 28% to 18% w.e.f. 15-11-2017, so that the benefit of such reduction in GST rate was not passed on to the recipients by way of commensurate reduction in price. From the details furnished, it appears that the base prices of the goods under investigations were indeed increased post GST rate reduction w.e.f 15-11-2017. Thus, by increasing the base p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent by Notification No. 41/2017-CT (Rate), dated 14-11-2017 has reduced rates on subject products. In view of the above said facts and the records, the Authority has observed that the Respondent, M/s. Raj & Company was a distributor of M/s. L Oreal India Pvt. Ltd. The Authority finds that M/s. L Oreal India Pvt. Ltd. was investigated by the DGAP for allegations of profiteering and not passed on the benefit of reduction of GST rate after the said Notification dated 14-11-2017 and the Authority has found them violating the provisions of section 171 of the CGST Act, 2017 for the products sold by them for the period from 1-4-2018 to 31-12-2018, and, this Authority vide Order No. 26/2022 dated 23-6-2022, has also confirmed profiteering to the tu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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