The National Anti-Profiteering Authority (NAA) found the Subway franchise, Hungry Eyes guilty of profiteering.
The applicant has alleged that the Respondent, Hungry Eyes had increased the base prices of his products and had not passed on the benefit of reduction in the GST rate from 18% to 5% w.e.f. November 15, 2017, vide Notification No.46/2017-Central Tax (Rate) dated November 14, 2017, by way of commensurate reduction in prices, in terms of Section 171 of the Central Goods and Services Tax Act, 2017.
The DGAP reported that as per the provisions of Section 171 (1) read with Rule 133 (1) the profiteered amount is determined as Rs. 6,66,70 as has been computed.
The Authority headed by the Chairman Dr. B.N. Shrama directed the Respondent to reduce his prices commensurately in terms of Rule 133 (3) (a) of the Rules.
The NAA further said that since the recipients of the benefit as determined, are not identifiable, the Respondent is directed to deposit an amount of Rs. 6,66,700/- in two equal parts of Rs. 3,33,350/- each in the Central Consumer Welfare Fund and the Maharashtra State Consumer Welfare Fund as per the provisions of Rule 133 (3) (c) of the CGST Rules 2017 along with interest payable at the rate of 18% within 3 months.
The NAA as per Rule 136 of the CGST Rules 2017 directed the Commissioners of CGST/SGST Maharashtra to monitor this order under the supervision of the DGAP by ensuring that the amount profiteered by the Respondent as ordered by this Authority is deposited in the CWFs of the Central and the Maharashtra State Government as per the details given above. A report in compliance with this order shall be submitted to this Authority by the concerned Commissioner within a period of 4 months from the date of receipt of this order.
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