2026-VIL-08-GSTAT-DEL-NAPA
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SGST Tribunal

GST – Anti-profiteering, Limitation - Sections 171 of CGST Act, 2017 – Passing of final order beyond the period of six months from the date of receipt of DGAP report - Whether the time limit provided under Rule 133 of the CGST Rules is mandatory or discretionary in nature – HELD – The anti-profiteering provisions are in the nature of beneficial legislation. The provisions are aimed at protecting the interests of the consumers and ensuring that the commensurate benefit of rate reduction or input tax credit is ultimately passed to the consumer. The time limit of six months prescribed under Rule 133 of CGST Rules are directory in nature. Therefore, the present proceedings are not barred by limitation - Profiteering - Section 171 of CGST Act, 2017 - The respondent increased the base prices of its products 6" Hara Bhara Kabab and 6" Aloo Patty on 15.11.2017, the date when the notification reducing the GST rate from 18% to 5% came into force - Whether the respondent indulged in profiteering by not passing on the benefit of reduction in GST rate to consumers - HELD - The increase in base prices of the products on the very date when the reduced GST rate came into effect indicates the respondent's willful attempt to maintain the existing MRP without passing on the benefit to consumers, as mandated under Section 171 of the CGST Act. The respondent failed to rebut the presumption that the reduction in GST rate must be passed on to consumers by way of commensurate reduction in prices. The Tribunal accepted the DGAP's report and directed the respondent to deposit the profiteered amount along with interest - Interest & Penalty - Whether the respondent is liable to pay penalty and interest on the profiteered amount - HELD - The provision for imposition of interest under Rule 133(3)(c) of CGST Rules was introduced w.e.f. 28.06.2019. Therefore, the respondent can be directed to pay interest only from 28.06.2019 till the date the profiteered amount is deposited, and not for any period prior thereto – Similarly the provision for imposition of penalty under Section 171(3A) of the CGST Act came into force w.e.f. 01.01.2020, whereas the period of investigation was from 15.11.2017 to 30.09.2019. Hence, the penalty cannot be imposed on the respondent retrospectively.
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