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Respondent has denied the benefit of reduction in the rate of tax to his buyers in contravention of the provisions of Section 171 (1) of the CGST Act, 2017, and has thus resorted to profiteering.

Anti-Profiteering Section 171 of the CGST Act, 2017— The report has been received from the Directorate General of Anti-Profiteering (DGAP) after detailed investigation. The Applicant referred the case to the Standing Committee on Anti-profiteering, alleging profiteering by the Respondent on the supply of “Food Processor” (HSN: 85094090), by not passing on the benefit of GST at the time of implementation of the GST w.e.f. 01.07.2017, further the Respondent had indulged in profiteering in contravention of the provisions of Section 171 of the Act. The DGAP stated that the basic price of the impugned product was increased after 01.07.2017, thus, by increasing the basic price consequent to the reduction in the rate of tax, the commensurate benefit of the implementation of GST was not passed on to the recipients. The total amount of profiteering covering the period 01.07.2017 to 31.12.2018 is Rs. 4,53,949/-.
Held that:- The Hon’ble Anti-Profiteering Authority directed the Respondent directed to deposit the profiteered amount of Rs. 4,53,949/- along with the interest to be calculated @ 18% and held that the Respondent has denied the benefit of reduction in the rate of tax to his buyers and has thus resorted to profiteering, therefore, liable to be penalized under the provisions of the Section 171 of the Act, 2017.—Kerala State Level Screening Committee on Anti-Profiteering, Commissioner, Director General of Anti-Profiteering, Central Board of Indirect Taxes & Customs Vs. Phillips India Ltd. [2020] 24 TAXLOK.COM 028 (NAPA)