2019 (4) TMI 380

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....ed from the Applicant No. 2 the Director General of Anti-Profiteering (DGAP) after detailed investigation under Rule 129 (6) of the Central Goods & Service Tax (CGST) Rules, 2017. The brief facts of the case are that the Kerala State Screening Committee on Anti-Profiteering vide the minutes 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 'Gypsum Board' (HSN Code 68091100) (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 profi....

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.... 12.5% - 8 Central Excise Duty (in Rs.) H=F*G 14.61 - 9 Central Sales Tax (CST) (%) I 2% - 10 Central Sales Tax (CST) (in Rs.) J=(F+H)*I 2.63 - 11 GST (%) K - 28% 12 GST (in Rs.) L=F*K - 32.70 13 Total Tax (in Rs.) M=H+J or L 17.24 32.70 14 Total Tax as a percentage of base price N=M/F*100 14.75% 28% 4. After scrutiny of the above two invoices issued by the Respondent, the DGAP has submitted that the rate of tax on the product was 2% (CST) and 12.5% (Central Excise Duty) in the pre-GST era and in the post-GST era, the rate of tax on the said product was fixed at 28%. Therefore, the rate of tax applicable to the product was increase....

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....tee dated 08.05.2018, profiteering was alleged against the Respondent, when the GST was introduced w.e.f. 01.07.2017. The DGAP has further stated that the values reported in table mentioned in para-3 of his Report dated 26.09.2018 were per UoM basis (per m^2) arrived at by dividing the total values in the invoices attached as annexures to the said Report, by the quantity (in m^2) mentioned in the said invoices and the details shown in the invoices were furnished in the table below:- Particulars   Pre-GST Post- GST 1 Product Description A Gypsum Board HSN Code 68091100) 2 Invoice No. B 1300002553 GY9114061424 3 Invoice Date C 29.05.2017 20.09.2017 4 Total Quantity (in m^2) D....

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....he product "Gypsum Board" on introduction of GST instead the rate of tax was increased from 14.75% to 28% and therefore the provisions of Section 171 (1) of the CGST Act, 2017 relating to profiteering, would not be attracted. 9. We have carefully examined the report of the DGAP and the documents placed on record and find that the only issue that needs to be dwelled upon is as to whether there was a case of reduction in the rate of tax and whether the provisions of section 171 of CGST Act, 2017 are attracted in this case. Perusal of Section 171 of the CGST Act, 2017 reads as under:- (1). "Any reduction in rate of tax on any supply of goods or services or the benefit of input tax credit shall be passed on to the recipient by way of comm....