The National Anti-Profiteering Authority (NAA) found the respondent, Raj & Company guilty of not passing GST rate cut benefits to its customers.
The applicant has alleged that Respondent, Raj & Company had not passed on the benefit of reduction in the rate of tax to the customers by way of commensurate reduction in the price of the product “Garnier Nat Shade 3” as per the provisions of Section 171 (1) of the CGST Act, 2017.
The DGAP reported that the Respondent had denied the benefit of rate reduction to the customers amounting to Rs. 3,43,109, pertaining to the period w.e.f. 15., 2017 to March 31, 2018 and had thus indulged in profiteering and violation of the provisions of Section 171 (1) of the CGST Act.
The Authority headed by the Chairman Dr. B.N. Sharma held that the Respondent has not passed on the benefit of reduction in GST rate on the “Garnier Nat Shade 3” and the respondent has violated the Section 171 (1) of the CGST Act.
However, the NAA did not impose the penalty on the grounds that since, no penalty provisions were in existence when the Respondent had violated the provisions of Section 171 (1) the penalty prescribed under Section 171 (3A) cannot be imposed on the Respondent retrospectively.
The NAA clarified that the Respondent was given the opportunity to file his written submissions. The Respondent did not avail of the opportunity. However, no written submissions have been received from the Respondent till date. Further, the DGAP vide his submissions dated 05.03.2019 has stated that the Respondent has deposited Rs. 3,43,109 in the Consumer Welfare Fund.Subscribe Taxscan Premium to view the Judgment