Facts: M/s. Emke Silks & Garments (P.) Ltd (“the respondent”) was alleged on supply of “shirts” (Design 689) under HSN code 6205, by Kerala State Screening Committee on Anti-profiteering referred an application to Standing Committee on Anti-profiteering for not passing on benefit of reduction in rate of tax at time of implementation of GST w.e.f. July 01, 2017. The application was examined by Standing Committee on Anti-Profiteering which was further investigated by DGAP on the basis of two invoices of the dealer which was submitted for reference.
Held: The Hon’ble National Anti-Profiteering Authority (“NAA”) vide its Order No. 10 of 2019 held that the ‘Shirts’ were exempted from the Central Excise Duty vide Notification No. 30/2004-CE, dated July 07, 2004, and only attracted VAT at the rate of 5 per cent. After implementation of GST with effect from July 01, 2017, the tax rate of the above product was fixed at 5 per cent. Therefore, it can be concluded that there was no reduction in the rate of tax on the product and hence there is no contravention of the anti-profiteering provisions contained in Section 171(1) of the CGST Act, 2017.
Citation: [2019] 103 taxmann.com 28 (NAA)