NAA : Exonerates lift-manufacturer from profiteering charges; Excise duty non-deductible where material supplied pre-GST

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National Anti-profiteering Authority drops the proceedings instituted by purchaser (applicant) of Schindler elevators, absent violation of provisions of Section 171 of CGST Act by manufacturer (respondent); Finds that applicant had been charged appropriate service tax on the advance paid before July 1, 2017 but as installation of elevator had been completed after coming into force of CGST Act, was charged GST at prevalent rate under separate invoices;

Moreover, accepts DG Safeguards’ finding that since all material was delivered before June 30, 2017, manufacturer was not in a position to pass any benefit by deducting excise duty from final GST charged; Notes applicant’s request for withdrawal of application citing inadequate understanding of GST provisions and subsequent clarifications pertaining to issue raised : NAA

Citation: [TS-218-NAA-2018-NT]