NAA orders Probe against L’Oreal [Read Order]

NAA - Probe - L’Oreal -Taxscan

The National Anti-Profiteering Authority ( NAA ) has ordered the probe against L’Oreal in India.

In the case of Director General of Anti-profiteering(DGAP), CBIT vs. M/s L’Oreal India Pvt. Ltd., the National Anti-profiteering Authority (NAA) has ordered the probe against L’Oreal has ordered the probe against L’Oreal in India, that L’Oreal India has failed to give any reasons pertaining to the reduction in its estimate and for not correcting the amount on its end and all of this was left on the authority to give its assent to the corrected amount.

Briefly, the facts of the case were that L’Oreal is engaged in the manufacturing and selling of more than 12,000 Stock Keeping Units (SKU) under 5 major categories namely hair colour, hair care, makeup, skincare, and luxury products. And the company asked for the benefit of deduction under various circumstances.

The issue in this case raised by the Director-General of Anti-profiteering (DGAP) was whether the rate of GST on the goods supplied by the respondent was reduced from 28% to 8% or not?

The reports furnished by the Director-General of Anti-profiteering (DGAP), CBIT consists of B.N. Sharma (Chairman), J.C. Chauhan and Amand Shah (Technical Members) were not accepted by the National Anti-profiteering Authority (NAA)  and was directed to further investigate on the issue raised and also furnish the fresh in accordance with the Rule 133(4) of the Central Goods and Service Tax (CGST), 2017.

The National Anti-profiteering Authority (NAA) has observed that the report submitted by the  Director-General of Anti-profiteering (DGAP) did not contain any reason for the reduction of its estimate or for the incorrect amount on its end, and why was it left to the authorities to approve the corrected amount. Further, it is a rule that in the case of absence of clear findings on the issue the authority can not pass a reasoned and just order and this approach were again not applied by the Director-General of Anti-profiteering(DGAP).

To Read the full text of the Order CLICK HERE