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TMI Blog2022 (5) TMI 736X X X X Extracts X X X X X X X X Extracts X X X X ..... ent is directed to reduce his prices commensurately in terms of Rule 133 (3) (a) of the above Rules. The Respondent is also directed to deposit an amount of Rs. 12,06,750/- in the Consumer Welfare Fund of the Central and the State Government in the ratio of 50:50, as per the provisions of Rule 133 (3) (c) of the above Rules along with 18% interest payable from the dates from which the above amount was realised by the Respondent from his recipients till the date of its deposit. The above amount shall be deposited within a period of 3 months from the date of passing of this Order failing which it shall be recovered by the concerned Commissioners CGST/SGST. Penalty - HELD THAT:- As the Respondent has committed an offence for violation of the provisions of Section 171 (1) during the period from 01.01.2019 to 31.01.2020 therefore, he is apparently liable for imposition of penalty under the provisions of Section 171 (3A) of the Act. These provisions came into effect from 01.01.2020 i.e penalty equivalent to ten per cent. of the profiteered amount will be imposed upon him for the amount collected after 01.01.2020. However, no penalty shall be leviable if the profiteered amount is depos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion No. 55/2020-Central Tax dated 27.06.2020, the time limit was extended upto the 31.08.2020 and then by Notification No. 65/2020- Central Tax dated 01.09.2020, the time limit for compliance was extended up to 30.11.2020. The National Anti-Profiteering Authority, vide it's Order dated 26.08.2020 in terms of Rule 129(6) of the Rules allowed further extension of three months. iii. Central Government, on the recommendation of the GST Council, reduced the GST rate on the product Services by way of admission to exhibition of cinematography films where price of admission ticket was above one hundred rupees from 28% to 18% and Services by way of admission exhibition of cinematograph films where price of admission ticket was one hundred rupees or less from 18% to 12% w.e.f. 01.01.2019, vide Notification No. 27/2018-Central Tax (Rate) dated 31.12.2018. This was a matter of fact which has not been contested by the Respondent. iv. The Respondent submitted his replies vide letters and e-mails dated 12.02.2019, 28.02.2019, 01.06.2020, 08.10.2020 and 20.10.2020. The replies of the Respondent are summed up as follows:- a) That he had sold movie tickets in three categories: - Si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... increased the base prices of the admission ticket when the GST rate was reduced from 28% to 18% and 18% to 12% w.e.f. 01.01.2019 in the manner illustrated in Table-'A' below. Table-A Sr. No. Admission ticket Pre Rate Reduction Post rate Reduction w.e.f. 01.01.2019 Price of Ticket inclusive of tax (in Rs.) GST Rate ( % ) Amount Charged i.e. Base Price (in Rs.) Price of Ticket inclusive of tax (in Rs.) GST Rate (%) Amount Charged i.e. Base Price (in Rs.) Commensurate Base Price (in Rs.) A B C D E=[C/118% or 128%] F G H I 1 Silver 100 18 84.75 95 12% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 84.75 2 Silver 125 28 97.65 120 18% 101.69 97.65 3 Gold 150 28 117.18 135 18% 114.41 117.18 4 Business 250 28 195.31 240 18% 203.39 195.31 5 Business 500 28 390.63 480 18% 406.8 390.63 xii. On the basis of aforesaid pre/ post reduction in GST rates and the details of outward supplies, it was observed that profiteering during the period from 19.07.2019 to 31.01.2020 from the sale of tickets in four categories amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 profiteering covering the period of 01.01.2019 to 31.01.2020, was Rs.12,06,750/-. 5. After perusal of the DGAP's Report, this Authority in its sitting held on 02.11.2020 decided to hear the Applicants and the Respondent on 19.11.2020 and accordingly Notice dated 5.11.2020 was issued to them. It is observed that the Respondent and Applicant No. 1 have been given 05 (Five) opportunities of hearing/filing written submissions on 19.11.2020, 07.12.2020, 21.12.2020, 15.01.2021, 01.02.2021. 6. The pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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%). The total amount of profiteering due to increase in the base prices of the impacted services, despite the reduction in the GST rate from 28% to 18% or from 18% to 12% was calculated as Rs. 12,06,750/-. The said profiteering amount has been arrived at by the DGAP by comparing the pre rate reduction selling price of the ticket with the sel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or 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/- (9,74,638 + 2,32,112). 12. The Authority determines the total amount of profiteering as Rs. 12,06,750/- as per the provisions of Rule 133 (1) of the above Rules as has been computed vide above Table- B and Table- D. Accordingly, the Respondent is directed to reduce his prices commensurately in terms of Rule 133 (3) (a) of the above Rules. The Respondent is also directed to deposit an amount of Rs. 12,06,750/- in the Consumer Welfare Fund of the Central and the State Government in the ratio of 50:50, as per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... od of limitation in all such proceedings, irrespective of the Limitation prescribed under the general law or Special Laws whether condonable or not shall stand extended w.e.f. 15th March 2020 till further order/s to be passed by this Court in present proceedings. Further, the Hon'ble Supreme Court, vide its subsequent Order dated 10.01.2022 has extended the period(s) of limitation till 28.02.2022 and the relevant portion of the said Order is as follows:- The Order dated 23.03.2020 is restored and in continuation of the subsequent Orders dated 08.03.2021, 27.04.2021 and 23.09.2021, it is directed that the period from 15.03.2020 till 28.02.2022 shall stand excluded for the purposes of limitation as may be prescribed under any general of special laws in respect of all judicial or quasi-judicial proceedings. Accordingly this Order having been passed today falls within the limitation prescribed under Rule 133(1) of the CGST Rules, 2017. 16. A copy of this order be sent to the Applicant, the Respondent and the Commissioners CGST/SGST of the concerned State/Union Territory free of cost for necessary action. File of the case be consigned after completion. - - Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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