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TMI Blog2024 (9) TMI 376X X X X Extracts X X X X X X X X Extracts X X X X ..... terms of Section 171 (1) of the above Act. It is also apparent that the DGAP has carried out the present investigation w.e.f. 15.11.2017 to 31.07.2023, however, the same was restricted to 08.07.2019 as he had discontinued the product Eclat Serum 30gm in 2019 and there was no sale of the product after 08.07.2019. However, the Respondent did not reduce the selling price of the products mentioned above when the GST rate was reduced from 28% to 18% w.e.f. 15.11.2017 and hence, the benefit of reduction in GST rate was not passed on to the recipients by way of commensurate reduction in the prices, in terms of Section 171 of the CGST Act, 2017 and therefore, he has contravened the provisions of Section 171 of the CGST Act, 2017. Accordingly, the profiteered amount is determined as Rs. 2,06,100/- as per the provisions of Rule 133 (1) of the CGST Rules 2017 - the Respondent is required to pass on the profiteered amount of Rs. 2,06,100/- along with the interest to be calculated @ 18% from the date when the above amount was collected by him from the recipients till the above amount is passed on/paid in terms of Rule 133 (3) (b) of the CGST Rules, 2017. The Respondent has denied benefit of rat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd submitted an Investigation Report dated 31.08.2022 under Rule 133 (5) of the CGST Rules, 2017 to the NAA. iii. The Commission went through the aforesaid Investigation Report dated 31.08.2022 submitted by the DGAP and passed Interim Order No. 03/2023 dated 31.07.2023. Vide Para-6 7 of the aforesaid Order, the CCI found that:- Para-6 This Commission had carefully examined the Report dated 31.08.2022 of the DGAP and the case records and it had been observed that the Respondent had not cooperated with the DGAP to furnish the necessary information required for completing the investigation. Therefore, the DGAP could not take the above investigation to its logical end since both the invoices (pre-rate reduction and post-rate reduction) of the suppliers viz. M/s Shree Suktam Enterprise, Ahmedabad and M/s Baxium Health Science, Ahmedabad were not supplied to the DGAP for comparison and to arrive at a conclusion so the DGAP could not investigate whether the suppliers have passed on the benefit of rate reduction to the Respondent or not and which could only be ascertained after getting the complete information/data from these two suppliers of the Respondent. It was also a fact that the DGA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spondent and the documents/evidences on record. The main issues for determination were: - a) Whether the rate of GST on the products supplied by the Respondent was reduced from 28% to 18% w.e.f. 15.11.2017 and if so, b) Whether such benefit of reduction in GST rate was passed on by the Respondent to the recipients, in terms of Section 171 of the CGST Act, 2017. ix. The DGAP has noticed that the Central Government, on the recommendation of the GST Council, had reduced the GST rate on the impugned Goods from 28% to 18% w.e.f. 15.11.2017, vide Notification No. 41/2017-Central Tax (Rate) dated 14.11.2017. x. The DGAP has also mentioned that the Respondent having GSTIN: 24AFKPG7000FIZZ in the name of M/s Baxium Health Science submitted the invoice wise sales details of the product Eclat Serum 30gm was as under: - Table-A Financial Year Quantity 2017-2018 2671 2018-2019 3303 2019-2020 (upto 08.07.2019) 169 Total 6143 xi. The DGAP has observed that the total sale of the product was 6143 units as shown in Table-A above. The Respondent also mentioned in his reply dated 26.12.2023 that there were 70 units which remained unsold due to near expiry date. These units were either given free of co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ide Notification No. 41/2017-Central Tax (Rate) dated 14.11.2017 and hence no profiteering was determined on Invoice No. 0378 dated 04.12.2017, 0665 dated 14.02.2018, 0715 dated 28.02.2018 as the actual rate charged was Rs. 206.5/- (as shown in Table-B above) in all the three invoices mentioned above in post-rate reduction period. Thus, the DGAP has reported that the benefit of reduction in GST rate was passed on to the recipients by way of commensurate reduction in the price, in terms of Section 171 of the CGST Act, 2017. The DGAP, on the basis of the calculation illustrated in Table-B above, has also quantified profiteering in similar way in case of other recipients impacted by the GST rate reduction vide Notification No. 41/2017 Central Tax (Rate) dated 14.1 1.2017, supplied by the Respondent during the period 15.11.2017 to 31.07.2023. xiv. The said profiteered amount had been arrived at by taking the average of the base prices of the Eclat Serum 30gm sold during the period 01.11.2017 to 14.11.2017 i.e. Rs. 432/- as calculated in Table-B above and then comparing with the actual invoice-wise base prices of such products sold during the period 15.11.2017 to 31.07.2023. The Respond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SAL (DELHI) 989 SONAM LAMIJ (NEW DELHI) 989 Total 11 ,068 4 8 Rajasthan RANG CREATIONS (JAIPUR) 989 SHRUSTI GHUWALEWALA (JAIPUR) 989 VAISHALI AGARWAL (JAIPUR) 989 Total 2,968 5 9 Uttar Pradesh ABHILASHA PRASAD (GHAZIABAD) 989 Total 989 6 18 Assam MRINALINEE MAHANTA (GUWAHATI) 989 Total 989 7 19 West Bengal TULIP BANERJEE (KOLKATA) 989 Total 989 8 23 Madhya Pradesh MAHI MAHESHWAR (INDORE) 1,779 Total 1,779 9 24 Gujrat CHANDAN SARKAR (BARODA) 989 MADHVI GAJJAR (AHMEDABAD) 989 NEW PRANAM MEDICAL STORE (AHMEDABAD) 739 RAHUL DAFTARY (AHMEDABAD) 690 SRINIVAS M (KALOL) 1,978 SWEETY ARORA (SURAT) 989 Total 6,376 10 27 Maharashtra AGELESS ((MUMBAI)) 87,230 AMRITA SHETTY ((MUMBAI)) 270 ANIMESH GUPTA / LIMITLESS ((MUMBAI)) 1,978 ANUPRITA MAHETA ((THANE)) 989 DEEPTI AHIRE ((MUMBAI)) 890 JINISHA SATRA ((MUMBAI)) 989 KERRY BAJAJ ((MUMBAI)) 1,978 KUMAR GUMMIJLA (THANE) 490 LIESHA BATHIJA (MUMBAI) 1,978 MANISHA SINGH PUNE 989 MOHIT ARORA-SONY PICTURES (MUMBAI) 989 NASRAT MAHTAB (MUMBAI) 989 NEHA SHENDE SHIRKE (MUMBAI) 240 RATNAKAR TRIVEDI (MUMBAI) 989 REKHA RADERA (MUMBAI) 989 SAKET SAURABH (MUMBAI) 989 SATYAM AGARWAL (MUMBAI) 989 SEJAL SONIGRA (THANE) 989 SHEETAL SETUMADHAVAN (PUNE) 989 SIDDHARTH ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on needs to determine as to whether there was any reduction in the GST rate and whether the benefit of rate reduction was passed on or not to the recipients as provided under Section 171 of the CGST Act, 2017. 5. The Commission finds that the Respondent having GSTIN 24AFKPG7000FIZZ is engaged in selling of medicines. It is also revealed that there has been a reduction in the rate of tax from 28% to 18% w.e.f. 15.11.2017, on the impugned goods being supplied by the Respondent, vide Notification No. 41/2017-Central Tax (Rate) dated 14.11.2017. Therefore, the Respondent is liable to pass on the benefit of tax reduction to his customers in terms of Section 171 (1) of the above Act. It is also apparent that the DGAP has carried out the present investigation w.e.f. 15.11.2017 to 31.07.2023, however, the same was restricted to 08.07.2019 as he had discontinued the product Eclat Serum 30gm in 2019 and there was no sale of the product after 08.07.2019. 6. However, the Respondent did not reduce the selling price of the products mentioned above when the GST rate was reduced from 28% to 18% w.e.f. 15.11.2017 and hence, the benefit of reduction in GST rate was not passed on to the recipients by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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