Anti-Profiteering — Section 171 of the CGST Act, 2017— The Applicant alleged profiteering in respect of the supply of ‘Sujata Mixer Grinder 900W’ by the Respondent. Further the Respondent had not passed on the benefit of reduction in the rate of GST on the impugned product supplied by him; although the rate of GST was reduced from 28% to 18% w.e.f. 27.07.2018 vide Notification no. 18/2018-CT (Rate) dated 26.07.2018, by way of commensurate reduction in price, in terms of Section 171. The DGAP concluded that the allegation that the base prices of the goods were increased when there was reduction in the GST rate from 28% to 18% w.e.f. 27.07.2018 appeared to be correct and by doing so the commensurate benefit of reduction in GST rate from 28% to 18%, was not passed on by the Respondent to his recipients and that Section 171(1) had been contravened.
Held that:- The Hon’ble Anti-Profiteering Authority held that the Respondent has denied the benefit of rate reduction of the GST to the consumers in contravention of the provisions of Section 171 (1) and has thus resorted to profiteering. He has committed an offence under Section 171 (3A) and liable to penalty under the provisions of the above Section. Accordingly, a Show Cause Notice be issued to him directing him to explain why the penalty prescribed under Section 171 (3A) read with Rule 133 (3) (d) should not be imposed on him.—S.C. Grover, Director General of Anti-Profiteering, Indirect Taxes & Customs Vs. Garg Kitchen Collection [2020] 22 TAXLOK.COM 011 (NAPA)