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TMI Blog2024 (7) TMI 1024X X X X Extracts X X X X X X X X Extracts X X X X ..... nsequence, the Government has also got G.S.T. from the petitioner at the higher rate on which the tickets were sold which has thus added up the revenue to some extent. A plain reading of the provision of section 171 of CGST Act, clearly indicates that the said provision has been introduced to ensure that the supplier of goods and services should not make profit from the reduction of the tax rate under the G.S.T. law. Rather the intention of the Government is that the moment the rate of tax under the G.S.T. is reduced, the benefit should immediately be passed on to the end-user by way of reduction in the prices commensurate with the reduction in the rate of tax. There are no illegality committed by the respondent-Authority which has passed the impugned order in Case No. 22/2020, dated 07.10.2020 - there are no merit in the writ petition and the same deserves to be and is accordingly dismissed. - HONOURABLE SRI JUSTICE P. SAM KOSHY AND HONOURABLE SRI JUSTICE N. TUKARAMJI For the Petitioner : Mr. K. Durga Prasad, Learned Counsel. For the Respondent No. 1 : Mr. Gadi Praveen Kumar, Learned Dy. Solicitor General of India. For the Respondent Nos. 2 and 4 : Mr. Zoheb Hussain, learned Sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... res was fixed for each class and the rates were inclusive of the taxes, but from 01.01.2019 onwards, the rate of tax under the G.S.T. was reduced from what it was earlier, i.e., 28% and 18% stood reduced to 18% and 12% for the tickets above Rs. 100/- and also for the tickets below Rs. 100/-. 8. The whole dispute arises on this reduction of tax. The allegation is that once when the rate of tax stood reduced from the bracket of 28% and 18% to 18% and 12% w.e.f. 01.01.2019, the authority concerned was required to reduce the price of the tickets commensurate with the reduction in the tax so that the audience who are the end-beneficiaries get advantage of the reduction in the ticket price. It is this which is alleged against the petitioners in all the writ petitions by the 4th respondent. 9. According to the learned Standing Counsel for the respondent Nos. 2 and 4, as per Section 171 (1) of the G.S.T. Act, any reduction in tax on the supply of goods or services, the benefit shall be passed on to the recipient by way of commensurate reduction in prices. Therefore, when the rate of tax for the two categories, i.e., tickets which are above Rs. 100/- and tickets which are below Rs. 100/- go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tickets because in the State of Andhra Pradesh (as it then was) (unified State), any change in the price of the tickets, there has to be a permission sought for from the Government and without the permission of the Government, the change of prices of the tickets cannot be brought into force and the price of the ticket is fixed at the time of granting of the license in its periodical renewals. Therefore, the petitioner as such could not have unilaterally reduced the prices of the tickets. It was also the contention of the learned counsel for the petitioner that while the rate of tax had been reduced, the licensing authority which had determined the rate of tickets in the petitioner s theatre had not intimated the petitioner about requirement of reduction in the prices of the tickets in terms of Section 171 of the G.S.T. Act, and by the time the petitioner came to know about it, the petitioner immediately reduced the rate of the ticket w.e.f. 11.03.2019 and as such there was no default or deliberate lapse on the part of the petitioner calling for the reduction of price of tickets 13. Learned counsel for the petitioner also strongly contended that non-reduction of the prices of the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r having paid the G.S.T. at the rate fixed by the respondent-Department even on the price at which the tickets were sold. As a consequence, the Government has also got G.S.T. from the petitioner at the higher rate on which the tickets were sold which has thus added up the revenue to some extent. 16. The G.S.T. law was a new law at that point of time and it was not long ago the G.S.T. law had come into force. It is a known fact there was for a considerable period of time in the beginning, many teething problems in the course of implementation of the said new tax regime. Considering the submissions that were put up by the learned Standing Counsel for the respondent-Department, it appears that variation in the prices of tickets was always with the permission of the Government alone. The theatre operators as such could not unilaterally fix the price of ticket. The period during which the petitioner had not reduced the price was only short. True it is that ignorance of law cannot be pleaded as a defence, but the fact that there has been no default on the part of the petitioner on the earlier tax regime was subsequent to 11.03.2019 coupled with the fact that the petitioner in between has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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