TaxTMI 
TaxTMI 
2018 (12) TMI 1002
X X X X Extracts X X X X
X X X X Extracts X X X X
....sions of Section 171 of the CGST Act, 2017. 2. The application was examined by the Standing Committee on Anti-profiteering and on 04.01.2018 it was forwarded to the Director General of Anti-Profiteering (here-in-after referred to as the DGAP) (erstwhile Director General of Safeguards) to initiate an investigation and collect evidence necessary to determine whether the benefit of ITC on the said Car had been passed on by the Respondent to the above Applicant or not. The DGAP after scrutiny of the application had returned the same to the Standing Committee for reconsideration on the ground that no meaningful investigation could be conducted as no evidence had been furnished by the above Applicant. The Standing Committee had returned the above application on 28.02.2018 to the DGAP stating that once the application had been recommended for investigation, it couldn't reconsider it's decision as it had become 'functus officio'. 3. On receipt of the reference from the Standing Committee on Anti-profiteering, the DGAP had re-examined the Application filed by the above Applicant and vide letter F.No. D-22011/APl/1 1/2018/736 dated 14.03.2018 a Report was submitted by t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ufacturers and the dealers were bound to follow the ex-show room prices fixed by the manufacturers. He has also mentioned that the Respondent had submitted that margin of the dealers had decreased by about Rs. 7,000/- per Car from the pre-GST regime while the sale price of the same Car had reduced by Rs. 15,683/- [Rs. (Pre-GST price) - Rs. (Post-GST price)]. 6. The DGAP has also furnished the purchase and sale invoice wise details of the base price of the Car sold by the Respondent to the Applicant which were applicable before and after coming in to force of the GST along with the applicable duties/taxes/cess as per the tables A, B, C and D given below:- Table A Pre- GST purchase invoice dated 15.04.2017 Pre GST Amount (in Rs.) Rate of Tax Remarks Base Price 6,22,876 Excise Duty 1,49,490.24 24 24% of Base Price Infrastructure Cess 24,915.04 4 4% of Base Price NCCD 6,228.76 1 1% of Base Price Cess 778.595 0.13 0.125% of Base p rice Price After Excise Duty, Infrastructure Cess (IC), NCCD 8,04,288.635 Price After Excise Duty, IC, NCCD CST+Freight + Insurance 10,528 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....0/-, which the Respondent had received for achieving pre-defined purchase and sale targets for the pre-GST and post-GST transactions respectively, the total post-GST profit margin of the Respondent came to Rs. 25,621/- (Rs. 16,621/- + Rs. 9,000/-), which was less than the total pre-GST profit margin of FRS. 33,089/- (Rs. 28,589/- + FRS. 4,500/-). He has further observed that the reduced profit margin of the Respondent was also evident from the fact that the Respondent's post-GST purchase price was Rs. 6,906.05 less than the pre-GST purchase price [Rs. (-) Rs. 9,30,132.95/-]. He has also informed that the post-GST sale price was Rs. 15,683.50/- less than the pre-GST sale price [Rs. 9,69,916.90/- (-) Rs. 9,54,233.40/-] and therefore, the allegation of profiteering made by the Applicant was not established. The DGAP has further informed that the landed price charged by the Respondent in the post-GST sale invoice dated 14.10.2017 was Rs. 1,73,346/less than the landed price in the pre-GST sale invoice dated 28.04.2017 (FRS. (-) Rs. 6,41,471/-) due to the reason that in the pre-GST period, the credit of Excise Duty, National Contingent Calamity Duty (NCCD), and Cesses etc. was not av....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of tax and the second pertaining to the passing on the benefit of the ITC. On the issue of reduction in the tax rates, it is clear from the DGAP's investigation report that there was no reduction in the tax rate in this case hence, the allegation of profiteering by the Respondent on account of change in tax rate is not sustainable. It is also revealed from the perusal of the record that the profit margin of the Respondent had got reduced from Rs. 28,589/- which he was receiving in the pre-GST period to Rs. 16,621/- in the post-GST period and after taking in to account the discounts of Rs. 4,500/- and Rs. 9,000/-, which the Respondent had received for achieving predefined purchase and sale targets for the above two periods the total post-GST profit margin of the Respondent was Rs. 25,621/- (Rs. 16,621/- + Rs. 9,000/-), which was less than the pre-GST profit margin of Rs. 33,089/- (Rs. 28,589/- + Rs. 4,500/-). It is also apparent that the reduced profit margin was due to the fact that the post-GST purchase price of the Respondent was Rs. 6,906.05 less than the pre-GST purchase price. It is also clear from the record that the postGST sale price charged by the Respondent was Rs. 15....