The National Anti-Profiteering Authority (NAA) directed the DGAP to further investigate the alleged profiteering against MRF Corporation.
The Applicant complaint that the prices of the subject goods, supplied by the Respondent, MRF Corporation had remained unchanged or were increased, after reduction in the rate of GST from 28% to 18% with effect from July 27, 2018, vide Notification No. 18/2018-Central Tax (Rate) dated July 26, 2018, and the benefit of tax rate reduction was not passed on by the Respondent to the recipients by way of commensurate reduction in the prices.
The DGAP reported that as per the outward sales data submitted by the Noticee, it has been observed that approximately 90 products were not sold before July 27, 2018, and accordingly they are construed as new products launched by the Noticee post GST rate reduction and therefore, they have been kept out of the purview of anti-profiteering.”
In this connection perusal of the Report of the DGAP shows that it has not been mentioned in it whether any effort was made to examine the details of the outward taxable supplies of the Respondent made during the previous months of May 2018 April 2018, March 2018, and so on to confirm that the above 90 products have not been sold by the Respondent in the pre rate reduction period.
The Authority headed by the Chairman Dr. B.N. Sharma observed that the DGAP is required to conduct a fresh investigation to ascertain that the above 90 products have been launched post-July 27, 2018, and they have not been sold during the period.
The NAA directed the Respondent to render all assistance to the DGAP while conducting such an investigation.
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