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TMI Blog2018 (4) TMI 1377X X X X Extracts X X X X X X X X Extracts X X X X ..... s Tax (CST) @ 0.2% and UP Value Added Tax (VAT) @ 14% (Total 51%). He had also stated that he had taken delivery of the Car on 11-07-2017 after coming into force of the GST w.e.f. 01-07-2017, by paying an amount of Rs. 8,98,750/-. He had further stated that after 01-07-2017 the respondent was required to reduce the Excise Duty, CST and VAT amounting to 51% from the price of the Vehicle of Rs. 9,13,300/- and then charge SGST @ 14%, CGST @ 14% and Cess @ 1% (Total 29%) on the reduced price. He has therefore alleged that he was not given benefit of reduced rate of Tax which amounted to profiteering by the above respondent and hence action should be taken against him. 2. The applicant had filed the above application with the Standing Committee vide his letter dated 01-11-2017 (Annexure-1) which was considered by the Committee in its meeting held on 07-11-2017 (Annexure-2) and referred to the DGSG for detailed investigation under rule 129 (1) of the CGST Rules, 2017, which was received by the DGSG on 29-11-2017, The DCSG had issued notice to the above respondent on 15-12-2017 (Annexure-5) to furnish reply and also supply copies of the documents mentioned in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ost-GST). (f) Copies of Service Tax returns from April to September, 2017 6. The DGSG had investigated whether the rate of tax on the car had been reduced post-GST and if so, whether there was substantial reduction in the rate of tax as had been contended by the applicant and whether the benefit of reduction in rate of tax had been passed on to the applicant. 7. The DGSG had found that the applicant had booked a car of premium colour (Orchid White) vide Sale Contract dated 28.04.2017 at ex-showroom price of Rs. 9,13,300/- (pre-GST), but he took delivery of the Car of base colour (Alabaster Silver) of the same model which had a lower ex-showroom price of Rs. 9,09,300/- (pre-GST). He had also found that since the applicant had taken delivery of the car of base colour, he was to be charged Rs. 4,000/- less than the contractual price. The DGSG had further found that the contention of the respondent that he had reduced the dealer's margin was not correct, as was evident from his reply dated 28.01.2018 enclosing therein the price list. It had also been revealed that the respondent, in his first reply dated 26.12.2017, had stated that he had redu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8,98,750 Benefit passed on to the applicant (excluding Rs. 4,000/- reduced for change in colour) 10,550 10. The DGSG had also found that the allegation of the applicant that the total tax prior to the implementation of GST was 51% which was reduced to 29% w.e.f. 01.07.2017, was not correct. He had further found that claim of the applicant that though the price charged from him of Rs. 8,98,750/- was less than the contractual price of Rs. 9,13,300/- still the said reduction was not commensurate with the reduction in the rate of tax was also not correct. It was also revealed that while the total incidence of tax was approximately 31.254% previously, which was fixed as 29% w.e.f. 01 07.2017, thus there was reduction of just over 2%. 11. The DGSG had also concluded that although the car of premium colour was booked at an amount of Rs. 9,13,300/- at the pre-GST tax rate, the delivery of the car was taken on 11.07.2017 after implementation of the GST and the respondent had charged an ex-showroom price of Rs. 8,98,750/- from the applicant, taking into account the correct amounts of basic price, freight, insurance, dealer's margin etc. and had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the GST was implemented w.e.f. 1st July 2017 as claimed by the applicant and whether the benefit as emanating from such reduced tax rate has not been passed on to the applicant in the form of commensurate reduction in the price of the car purchased by him. ii. Whether any input tax credit benefit was to be passed on to the applicant by the respondent. 15. With regard to point no. (i) above It has been found from the record that the rate of tax both during pre-GST era as well as the post GST era was a matter of fact which has been clearly delineated in detail by the DGSG in his report dated 23.02 2018 as has been mentioned above. It has also been found that the applicant's contention that the pre-GST rate of tax which was 51% was reduced to 29% in post GST era, was factually incorrect as the pre-GST rate of tax, on the car contracted to be purchased by the applicant, was leviable at 31.254% which was rationalized to 29% (CGST-14%+SGST-14%+Cess-1%)thus there was a reduction of only about 2%. It is also clear from the Table 'B' above that though the car of premium colour was booked at an amount of Rs. 9,13,000/- at pre-GST tax rate but when the applican ..... X X X X Extracts X X X X X X X X Extracts X X X X
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