The National Anti-Profiteering Authority (NAA) under the goods and services tax (GST) has passed its third order favoring Elevator manufacturers Schindler India by dismissing a complaint against it.
The NAA constituted on last November, passed three orders so far. All these three orders are in favour of the industry.
In its first order in April wherein the authority dismissed a complaint against a Bareilly-based Honda car dealer by holding that it did not contravene the anti-profiteering provisions of the Central Goods and Services Tax Act.
Recently, in the authority has rejected charges of anti-profiteering against KRBL Limited and held that it did not violate provisions of Section 171 of the Central Goods and Services Tax Act, 2017.
In its latest order, the three member NAA headed by chairman BN Sharma has dismissed complaint against elevator manufacturer Schindler India for charges of profiteering filed by a Delhi business.
The complainant alleged that the Company charged service tax on payment made to it before GST rollout on July 1, 2017 and GST for the payment installments made in July when the installation took place. However, since elevators were delivered to the firm before July 1, the tax had been charged without excluding the pre-GST regime excise duty. Hence, the applicant was charged twice, once on the pre-GST excise duty and subsequently on the full value of the material used in the lift.
Considering the investigative report of the Directorate General of Safeguard (DGS), the NAA consisting three members of the authority dismissed the complaint.
“In respect of the two invoices date July 27, 2017, as the installation of the second lift had been completed after coming into force of the CGST Act, 2017, he was liable to be charged GST at the rate prevalent on July 27, 2017,” the NAA order said.
The authority also allowed the request of the applicant to withdraw the complaint as he was not aware of the GST provisions at the time of filing.
The “anti-profiteering” measures enshrined in the GST law provide an institutional mechanism to ensure that the full benefits of input tax credits and reduced GST rates on supply of goods or services flow to the consumers. This institutional framework comprises the NAA, a Standing Committee, Screening Committees in every State and the Directorate General of Safeguards in the Central Board of Indirect Taxes & Customs (CBIC).
