Samsung gets show cause, asked to deposit Rs 37 lakh
T
he National Anti-Profiteering Authority (NAA) has issued a show-cause notice to Samsung Electronics India for not passing on GST benefits to customers.
The authority has also asked Samsung to deposit an amount of Rs 37,85,342, equivalent to the determined profiteered amount along with reducing the prices commensurately.
The NAA passed the order in a matter related to supply of LED TVs by the electronics major, whereby the company had not reduced the prices even after GST was reduced on the products.
"The respondent is directed to deposit an amount of Rs 37,85,342 in the (Consumer Welfare Fund) CWF of the central and the concerned state government, as the recipients are not identifiable, along with 18 per cent payable from the dates from which the above amount was realised by the respondent from its recipients till the date of its deposit," said the authority's order.
Samsung will have to deposit the amount within three months from the passing of the order, failing which the amount would be recovered by the commissioners concerned of CGST and SGST, said the order dated February 27.
The order said "The respondent has denied the benefit of tax reduction to the customers in contravention of the provision of Section 171(1) of the CGST Act, 2017. Therefore, he is apparently liable for imposition of penalty under Section 171(3A) of the CGST Act, 2017. Therefore, a show cause notice be issued directing him to explain why the penalty prescribed under the above sub-section should not be imposed on him."
The anti-profiteering authority also directed commissioners of CGST and SGST to monitor the execution and adherence to the order by ensuring the amount profiteered by Samsung is deposited.
"A report in compliance of this order shall be submitted to this authority by the commissioner cncered within a period of 4 months from the date of receipt of this order," said the order signed by NAA Chairman B.N. Sharma.
Samsung did not respond to a query sent by IANS.
✔️ Samsung gets show cause, asked to deposit Rs 37 lakh
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