NAA imposes Penalty on Samsung for denying the benefit of Tax Reduction to the Consumers [Read Order]

The National Anti-Profiteering Authority (NAA) has imposed a penalty on Samsung for denying the benefit of tax reduction to its customer.

In the case of M/s. Local Circle Pvt. Ltd. vs. M/s Samsung India Electronics Pvt. Ltd., it was observed that the respondent has denied the benefit of the tax reduction to is customer, which is against the provisions of Section 171(1) of the Central Goods and Service Tax (CGST) Act, 2017 and at the same time directed the Central Goods and Service Tax (CGST) or State Goods and Service Tax (SGST) Commissioner to ensure that the amount profiteered by the respondent must get deposited in the Customer Welfare Fund (CWF) and submit the compliance report of this order within 4 months.

The respondent company namely Samsung did not provide the benefit of tax reduction to its consumer on the purchase of the LED TVs.

The issue raised in this case was whether the act of not granting the benefit of tax reduction by the respondent company to its consumer is equitable in the eye of law or not?

The National Anti-Profiteering Authority (NAA) comprising of a chairman, B.N. Sharma; Technical Members J.C. Chauhan and Amand Shah in the light of the contentions made by both the parities imposed the penalty on Samsung for denying the benefit of tax reduction to its customer.

The Authority observed that the respondent has denied the benefit of the tax reduction to is customer, which is against the provisions of Section 171(1) of the Central Goods and Service Tax (CGST) Act, 2017 and at the same time directed the Central Goods and Service Tax (CGST) or State Goods and Service Tax (SGST) Commissioner to ensure that the amount profiteered by the respondent must get deposited in the Customer Welfare Fund (CWF) and submit the compliance report of this order within 4 months.