Withdrawal of discount through another invoice does not amount to profiteering

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Where applicant had ordered a Godrej Interio Almirah through respondent and tax invoice dated 7-11-2017 was issued to him for an amount of Rs. 14,852 by supplier but at time of delivery another invoice dated 29-11-2017 was issued by supplier for an amount of Rs. 14,152 and applicant had alleged that he had paid an amount of Rs. 14,852 to respondent and by not refunding differential amount, respondent was resorting to profiteering which amounted to contravention of provisions of section 171.

It was held that difference in price was due to different rate of GST on both dates and supplier had charged correct rates of GST which were prevalent at time of placing of order and supply of Almirah through two invoices and, therefore, no illegality had been done by supplier while executing order placed by applicant and allegation of violation of provisions of section 171 was not established.

Citation: [2018] 95 taxmann.com 221 (NAA)