In a consumer-favour ruling, the National Anti-Profiteering Authority (NAA) has punished the Maggi Noodles Dealer for not passing the reduced GST rate benefits to the consumers.
Before the authority, the applicant alleged that when he purchased Maggi Noodle packs, having Maximum Retail Price (MRP) of Rs. 5/-, he does not passed the benefit of reduction of GST rates on the said goods after 15.11.2017. it was pointed out that on 06.11.2017, he purchased the good with a base price of Rs. 3.96/- per pack and paid 18% GST. The GST rate on the said good was reduced from 18% to 12% w.e.f. 15.11.2017. however, on 28.11.2017, when the applicant purchased the same good from the respondent, had started charging 12% GST on the product’s increased base price of Rs. 4.17/- per pack which is, according to the petitioner, the Respondent had not passed on the benefit of the reduction of GST rate to him.
The authority noted that the Respondent has no such liberty to arbitrarily decide in respect of which products he would pass on the benefit and in respect of which products he would not pass such benefit.
“As per the provisions of Section 171 of the Act the benefit has to be passed on to each recipient and the same cannot be selectively granted or denied. It is also clear that the Maggi Noodle pack of 35 Gms. is distinct from a 70 Gms. pack and both the packs may be bought by the different recipients/customers and hence the benefit accruing to one customer cannot be given or denied to another nor can the benefit given to one set of customers arbitrarily enhanced and set off against the another. No such adjustments are permissible under the Act,” the authority said.
Finding the respondent guilty, the authority determined the quantum of profiteering as Rs. 90,778/- including the profiteering of Rs. 2,253/- made by the Respondent from the Applicant No. 1 and directed to reduce the price of the product commensurate to the reduction in the rate of tax.
He is also directed to refund an amount of Rs. 2,253/- to the Applicant with interest. Since the other customers of the product are not identifiable, the Respondent is hereby directed to deposit the balance amount of Rs. 88,525/- along with the interest at 18% P.A. till the date of deposit in the respective Central or State Consumer Welfare Fund within a period of 3 months from the date of receipt of this order.
It was also directed the department to initiate penalty proceedings against the respondent for the offence of issuing incorrect tax invoices.
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