The National Anti-Profiteering Authority (NAA) held that Samsonite has denied the benefit of reduction of Goods and Service Tax (GST) to its consumers, in contravention of Section 171 of Central Goods and Service Tax (CGST), 2017.
The applicant filed an application before the Standing Committee on Anti-profiteering, under Rule 128 (1) of the CGST Rules, 2017, alleging profiteering by the Respondent in respect of “American Tourister Sky Tracer HL Blue 68 cm Hard Trolley” which was being supplied by the Respondent. The Applicant had alleged that the Respondent did not reduce the selling price of the above product when the GST rate was reduced from 28% to 18% vide Notification Central Tax (Rate) dated November 14, 2017, and he had kept the MRP of the above product unchanged at Rs. 9100/- and thus, the benefit of reduction in the GST rate was not passed on to the recipients by way of commensurate reduction in its price.
The DGAP has also reported that since the Respondent has failed to give proof of satisfaction of the conditions mentioned in Section 15 (3)(b), thus, the discounts given through credit notes were not liable to be excluded from the value and hence the benefit of discounts could not be given to the Respondent.
The Authority headed by Chairman B.N. Sharma and Technical Members J.C. Chauhan and Amand Shah held that Samsonite has denied the benefit of reduction of Goods and Service Tax (GST) to its consumers, in contravention of Section 171 of Central Goods and Service Tax (CGST), 2017. Hence, he has committed an offense under Section 171 (3A) of the CGST Act, 2017.
“Therefore, the respondent is apparently liable for imposition of penalty under the provisions of the above Section. Accordingly, a Show Cause Notice be issued to him directing him to explain why the penalty prescribed under Section 171 (3A) of the above Act read with Rule 133 (3) d) of the CGST Rules, 2017 should not be imposed on him,” the authority said.Subscribe Taxscan AdFree to view the Judgment