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No profiteering if no reduction in tax rate

Shanti Prime Publication Pvt. Ltd. Anti-Profiteering — In the instant case, applicant alleging profiteering by the Respondent on the supply of “Eastern Meat Masala” (HSN Code 0910), by not passing on the benefit of reduction in the rate of tax at the time of implementation of GST w.e.f 01.07.2017. Thus it was alleged that the Respondent had indulged in profiteering in contravention of the provisions of Section 171 of Central Goods and Service Tax (CGST) Act, 2017 In this regard.

Held that—It is apparent from the perusal of the facts of the case that there was no reduction in the rate of tax on the above product w.e.f. 01-07-2017, hence the anti-profiteering provisions contained in Section 171(1) of the Central Goods and Services Tax Act, 2017 are not attracted. There is also no increase in the per unit base price (excluding tax) of the above product and therefore the allegation of profiteering is not sustainable.

Hence there is no merit in the application filed by the above Applicant and the same is accordingly dismissed.State Level Screening Committee on Anti-Profiteering, Kerala, Director General Anti-Profiteering, Central Board of Indirect Taxes & Customs Vs. M/S Zeba Distributors, Immanuel Stores— [2018] 7 TAXLOK.COM 028 (NAPA)

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