TaxTMI 
TaxTMI 
2022 (5) TMI 736
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....anted vide Notification No. 27/2018-Central tax (Rate) dated 31.12.2018 and instead, increased the base price to maintain the same cum-tax selling price. 3. The DGAP in it's report dated 28.10.2020 has stated that i. The aforesaid Application was examined by the Standing Committee on Anti-profiteering, in his meeting held on 10.01.2020 whereby it was decided to forward the same to the DGAP to conduct a detailed investigation in the matter. Accordingly, a Notice under Rule 129 of the Rules was issued by the DGAP on 29.01.2020, calling upon the Respondent to reply as to whether he admit that the benefit of GST rate reduction had not been passed on to the Applicant No. 1 by way of commensurate reduction in price and if so, to suomoto determine the quantum thereof and indicate the same in his reply to the Notice as well as furnish all supporting documents. The Respondent and the Applicant No. 1 were also given opportunity to inspect the non-confidential evidences/information. While the Applicant did not avail of the opportunity, the Respondent availed the said opportunity. ii. The period covered by the current investigation was from 01.01.2019 to 31.01.2020. The time limit....
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....on tickets, pre and post 01.01.2019. c) Sample copies of the invoice/tickets, pre and post 01.01.2019. d) GSTR-1 and GSTR-3B returns for the period December, 2018 to January, 2020. vi. On examination of the details of sales data, complaint of the Applicant No. 1 and various replies submitted by the Respondent, it was observed that five categories of tickets (Rs. 100/-, Rs. 125/-, Rs. 150/ Rs 250/- and Rs. 500/-) were sold by the Respondent during the pre and post rate reduction period effective from 01.01.2019. Hence, the investigation was limited to reduction in rate of GST from 28% to 18% and from 18% to 12% for all categories of admission tickets sold by the Respondent. vii. In terms of Section 171(1) of Central Goods and Services Tax Act, 2017, the legal requirement was that in the event of benefit of ITC or reduction in rate of tax, there must be a commensurate reduction in prices of the goods or services. viii. From the sales data made available by the Respondent, it was observed that although the price of Silver category ticket (Rs. 100/-) and price of Gold category tickets were reduced by the Respondent from 01.01.2019 and price of all other categ....
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.... amount comes to Rs. 9,74,638/-. The details of the computation are given in the Table "B" below. Table-B Sr.No. Admission ticket 01.01.2019 to 18.07.2019 Base Price charged Commensurate Base Price (Rs.) Excess amount charged per ticket Excess tax charged per ticket @ 18% Profiteering per unit Qty. Sold Total Profiteering (including tax (in Rs.) A B C D E=(C-D) F=(E*12% or 18%) G=(E+F) H I=(H*G) 1 Silver 84.82 84.75 0.07 0.01 0.08 126358 10,109 2 Silver 105.93 97.65 8.28 1.49 9.77 25272 2,46,907 3 Gold 118.64 117.18 1.46 0.27 1.73 258289 4,46,840 4 Business 211.86 195.31 16.55 2.99 19.54 7717 1,50,790 5 Business 423.73 390.63 33.10 5.96 39.06 3072 1,19,992 Grand Total 9,74,638/- xi. The above said profiteering is for the period 01.01.2019 to 18.07.2019, as it was claimed by the Respondent that he had reduced the price of admission ticket for the four slabs i.e. Rs 125/-, Rs 150/-, Rs 250/- and Rs.500/-. This contention was found correct and it was observed that the R....
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....lver 84.82 84.75 0.07 0.01 0.08 114938 9,195 2 Silver 101.69 97.65 4.04 0.73 4.77 22988 1,09,653 3 Gold 114.41 117.18 -2.77 -0.50 -3.27 229343 0 4 Business 203.39 195.31 8.08 1.45 9.53 6791 64,718 5 Business 406.78 390.63 16.15 2,91 19.06 2547 48,546 Grand Total 2,32,112/- 4. The DGAP concluded that from the Tables above, it was clear that the base price of the admission tickets were increased, as a result of which the benefit of reduction in GST rate from 28% to 18% & 18% to 12% (w.e.f. 01.01.2019), was not passed on to the recipients by way of commensurate reduction in prices charged (including GST @ 12% & 18%). For the period from 01.01.2019 to 18.07.2019, the Respondent did not reduce the base price of five categories of tickets in commensurate manner resorting to profiteering amounting to Rs. 9,74,638/- and for the period from 19.07.2019 to 31.01.2020, the Respondent did not reduce the base prices of four categories of tickets in commensurate manner resorting to profiteering amounting to Rs. 2,32,112/- and hence the total amount of profiteer....
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....g others. e) Since he has agreed to make the payment of alleged profiteered amount, he did not want to exercise his option of personal hearing in the matter. f) He may be allowed to make the payment of alleged profiteered amount in number of monthly instalments, as may be considered necessary, without imposition of interest in this regard. He also quoted the case of Samsung India Electronics (P.) Ltd. v. Union of India and Gaurav Sharma Food Industries Vs Union of India & Ors. in this regard. 7. This Authority has carefully considered the Report furnished by the DGAP and the submissions made by the Respondent and the record of the case. The Central Government, on the recommendation of the GST Council, had reduced the GST rate on the "Services by way of admission to exhibition of cinematograph films" from 28% to 18% for ticket priced above Rs. 100 and from 18% to 12% w.e.f. 01.01.2019 for tickets priced below Rs. 100, vide Notification No. 27/2018-Central Tax (Rate) dated 31.12.2018. The DGAP after detailed investigate in his Report dated 28.10.2020 concluded that the base prices of the admission tickets were increased, as a result of which the benefit of reduct....
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....n monthly instalments, without imposition of interest in this regard. He has also quoted the case of Samsung India Electronics (P.) Ltd. v. Union of India and Gaurav Sharma Food Industries Vs Union of India & Ors. The above quoted orders are interim orders and are yet to attain finality and are pending before the court of law. Further, the facts of present case are different from the above-referred case and hence they are not applicable. There are no specific provisions in the CGST Act or rules, which provide for payment of determined profiteered amount in instalments. 11. In view of the above facts, it is evident that the Respondent did not reduce the base prices of five categories of tickets in commensurate manner for the period from 01.01.2019 to 18.07.2019 and four categories for the period from 19.07.2019 to 31.01.2020 and has contravened the provisions of section 171 of the CGST Act. This Authority determines the profiteered amount as Rs. 9,74,638/- and Rs.2,32,112/- for the period 01.01.2019 to 18.07.2019 and 19.07.2019 to 31.01.2020 respectively. Therefore, the total amount of profiteering covering the period of 01.01.2019 to 31.01.2020 is determined as Rs.12,06,750/- (9....