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No profiteering on supply of mattress as there is no reduction in tax rate

Shanti Prime Publication Pvt. Ltd. Anti-Profiteering — The brief facts of the case are that The Kerala State Screening Committee had referred the present case to the Standing Committee on Anti-profiteering, alleging profiteering by the Respondent on the supply of Peps Spring Koil Bornell Normal Maroon 75x60x6" Mattress (HSN Code 94042910), 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 CGST Act, 2017.

Held that—It is clear 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 and that the rate of tax on the said product has increased from 14.5% (2% CST + 12.5% Excise) to 28% and therefore the allegation of profiteering is not sustainable in terms of Section 171 of the CGST Act, 2017. As such, we do not find any merit in the application filed by the above Applicant and accordingly the same is dismissed.State Level Screening Committee on Anti-Profiteering, Kerala. Vs. Peps Industries Pvt. Ltd. [2018] 7 TAXLOK.COM 046 (NAPA)