The Respondent has deliberately and consciously acted in contravention of the provisions of the CGST Act, 2017 by issuing incorrect invoices which is an offence under Section 122 (1) (i) of the above Act and hence he is liable for imposition of penalty under the above Section read with Rule 133 (3) (d) of the CGST Rules, 2017.
Anti-profiteering— The brief facts of the present case are that the rate of tax on Grinder was reduced from 28% to 12% w.e.f. 15.11.2017, vide Notification No. 41/2017-Central Tax (Rate) dated 14.11.2017. The Applicant No. 1, after verification that the benefit of the rate reduction was not passed on to the customers had referred the matter to the Standing Committee on Anti-profiteering, alleging profiteering by the Respondent on the supply of “Matchless Plus TTWG Grinder”.
Held that— the Respondent has acted in contravention of the provisions of Section 171 of the CGST Act, 2017 and has not passed on the benefit of reduction in the rate of tax to his recipients by commensurate reduction in the prices. Accordingly, the amount of profiteering is determined as Rs.32,926.36 as per the provisions of Rule 133 (1) of the CGST Rules, 2017. The Respondent is therefore directed to reduce the price of the above product as per the provisions of Rule 133 (3) (a) of the CGST Rules, 2017, keeping in view the reduction in the rate of tax so that the benefit is passed on to the recipients. The Respondent is also directed to deposit the profiteered amount of Rs.32,926.36 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 deposited.