TaxTMI 
TaxTMI 
2019 (3) TMI 429
X X X X Extracts X X X X
X X X X Extracts X X X X
....of its meeting held on 08.05.2018 had referred the present case to the Standing Committee on Anti-profiteering, alleging profiteering by the Respondent on the supply of 'Caribbean Wood Tile' (here-in referred to as the product) by not passing on the benefit of reduction in the rate of tax at the time of implementation of the Goods and Services Tax (GST) w.e.f. 01.07.2017. Thus, it was alleged that the Respondent had indulged in profiteering in contravention of the provisions of Section 171 of the Central Goods & Service Tax (CGST) Act, 2017. In this regard, Kerala State Screening Committee had relied on two invoices issued by the Respondent, one was dated 27.04.2017 (Pre-GST) and the other was dated 25.08.2017 (Post-GST). 2. The ab....
X X X X Extracts X X X X
X X X X Extracts X X X X
....era (Central Excise Duty @ 12.5% of the 60% of the MRP) which was increased to 28% in the post-GST era (GST). Further, Section 171 of the CGST Act, 2017, comes into play in the event there is a reduction in rate of tax or there is an increase in the input tax credit (the latter is not the subject matter of this enquiry). Consequently, the DGAP has stated that as there was no reduction in the tax rate of the said product the provisions of Section 171 of the CGST Act, 2017, were not contravened and hence the allegation of profiteering by the Respondent was not established 6. The above report was considered by the Authority in its meeting held on 03.10.2018 and it was decided that since there was no complainant/other applicant in this case, t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f the Annexure-7, was not matching with the invoice details. Further, the DGAP stated that for calculation of pre-GST base price (excluding duties and taxes), the rate of Central Excise duty had been wrongly considered as 12% of the transaction value, whereas Central Excise duty was leviable @ 12.5% on 60% of the MRP(40 0/o abatement). Since the transaction had taken place at a price lower than the MRP, the MRP has no bearing on the allegation of profiteering. 9. The DGAP has further observed that in the pre-GST invoice dated 27.04.2017, there was no VAT (transaction was exempt from CST) and the Central Excise duty amounted to 13.97%, there was no reduction in the tax rate post implementation of GST. In fact, post-GST, the tax rate increas....