NAA: Upholds profiteering claim on “Sanitary Napkin” supply for not passing 'commensurate' rate reduction benefit

National Anti-Profiteering Authority (NAA) upholds profiteering in respect of the supply of “Sanitary Napkins” while finding that benefit of tax reduction was not passed; Observes that, Respondent increased base-price in spite of the reduction in tax rate from 12% to NIL (without benefit of ITC) w.e.f. July 27, 2018 vide Notification No. 19/2018-Central Tax (Rate); While DGAP’s report clearly stated that cost on account of denial of ITC plus profit margin should ha...