NAA finds Theco India guilty of denying GST rate reduction benefit to the recipients [Read Order]

The National Anti Profiteering (NAA) found Theco India guilty of denying GST rate reduction benefit to the recipients.

The Applicant has alleged that the Respondent had not passed on the benefit of reduction in the rate of tax of IGST to his recipients on the purchase of two items “Lava CNC 240 Milling Machine along with accessories” and “Sintering Furnace D664” from the Respondent based on quotation dated November 28, 2016 having taxable value of Rs.60,24,120.

The DGAP reported that the Respondent had denied the benefit of tax rate reduction to his recipients amounting to Rs. 4,78,085 and had thus indulged in profiteering and violation of the provisions of Section 171 (1) of the above Act.

The Authority headed by Dr. B.N. Sharma noted that that the Respondent has not passed on the benefit of reduction in IGST rate on the above products and hence, the Respondent has violated the provisions of Section 171 (1) of the CGST Act, 2017.

However, the NAA did not impose any penalty as 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.

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