The National Anti-Profiteering Authority ( NAA ) found M/s Electronic Mart India guilty of profiteering for not passing on the GST reduction benefits.
The Applicant alleged the profiteering against the Respondent, M/s Electronic Mart India in respect of supply of Monitors and TVs of screen size up to 32 inches despite reduction in the rate of GST from 28% to 18% w.e.f. January 1, 2019.
The Applicant had also alleged that the product LG LED TV having value of Rs. 12,600 was sold at a lower price after the reduction in the GST rate from 28% to 18% w.e.f. January 1, 2019 levied vide Notification No. 24/2018-Central commensurate reduction in the price.
The Adjudication Authority headed by the Chairman B.N.Sharma held that the Respondent has denied benefit of rate reduction to the buyers of his products in contravention of the provisions of Section 171 (1) of the CGST Act, 2017 and he has thus resorted to profiteering.
The profiteering watchdog, NAA said that he has committed an offence for violation of the provisions of Section 171 (1) during the period from January 1, 2019 to June 30, 2019 and therefore, he is apparently liable for imposition of penalty under the provisions of Section 171 (3A) of the Act.
However, the Authority did not impose the penalty on perusal of the provisions of Section 171 (3A) under which penalty has been prescribed for the violation shows that it has been inserted in the CGST Act, 2017 w.ef. January 1, 2020 vide Section 112 of the Finance Act, 2019 and it was not in operation during the period when the profiteering was committed. The penalty prescribed under Section 171 (3A) cannot be imposed on the Respondent authority as retrospectively.
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