Page 34 - GSTL_21st May 2020_Vol 36_Part 3

J60 GST LAW TIMES [ Vol. 36
The NAA in conclusion held that the provisions of Section 171 are com-
pletely clear and unambiguous and there is hardly any scope for misinterpreta-
tion of the same. The intent of Legislature is to protect the interest of the con-
sumers as and when the public exchequer intends to reduce the taxes or provide
the benefit of ITC. Therefore, the Authority within the ambit of the provisions of
the law has not dwelt into price fixation but restricted itself in extending the ben-
efits of rate reduction to the recipient and thus there is no question of violation of
the right of the respondent granted under Article 19(1)(g). The law or the Au-
thority has not questioned the respondents right to conduct business or to fix the
prices of its products but ensures that the benefits provided by the Government
through the respondent are necessarily passed on. The question of retaining
these benefits by the respondent would deemed to be doing injustice to the con-
sumers and thus depriving the consumers of the benefits extended through the
Public Exchequer.
It held that JJ had increased the base price w.e.f. 27-7-2019 more than
what it was entitled to increase, which clearly shows that it had deliberately in
conscious disregard of the provisions of Section 171 of the Act had resorted to
profiteering. Therefore, upholding the findings of the DGAP, the Authority held
that they had profiteered to the extent of ` 42,70,18,581/- which includes an
amount of ` 8,50,029/- for Canteen Stores Department (CSD) outlets and
` 42,61,68,552/- for outlets other than CSD outlets.
The profiteered amount by JJ was determined as ` 42,70,18,581/- as per
the provisions of Rule 133(1) of the CGST Rules, 2017 as JJ had failed to pass on
the benefit of rate reduction to his customers. Accordingly, JJ was directed to re-
duce the prices by way of commensurate reduction keeping in view the reduced
rate of tax and benefit of ITC which has been denied by it as per Rule 133(3)(a) of
the CGST Rules, 2017. JJ was further directed to deposit the said amount as per
the provisions of Rule 133(3)(c) in the ratio of 50:50 in the Central or the State
CWFs of all the States and UTs along with the interest @ 18% till the same is de-
posited. The concerned Central and State GST Commissioners were directed to
ensure that the amount due is got deposited from along with interest and in case
the same is not deposited necessary steps shall be taken by them to get it recov-
ered from the respondent as per the provisions of the CGST/SGST Acts under
the supervision of the DGAP.
JJ was also liable for imposition of penalty under the provisions of Sec-
tion 171(3A) of CGST Act, 2017.

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