2026-VIL-23-GSTAT-DEL-NAPA
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SGST Tribunal

GST - Anti-profiteering - Limitation under Rule 128 of the CGST Rules, 2017 - Whether a delay in referring a matter to the investigating authority beyond the statutory timeline prescribed under Rule 128 vitiates the entire proceedings – HELD - The time limits prescribed under Rule 128 for the Standing Committee to refer a matter are directory and not mandatory in nature. Anti-profiteering provisions constitute beneficial legislation enacted to protect consumer interests, and beneficial statutes must receive liberal construction that favors the consumer. Since the Rules do not provide any prescribed consequence for lapse of such timelines, procedural delays by a statutory authority cannot defeat the substantive rights of consumers – The procedural delays by statutory functionaries do not render proceedings invalid in the absence of an express statutory consequence - The objection regarding limitation is rejected, and the proceedings are not barred by limitation - Anti-profiteering - Inclusion of GST in profiteered amount - Whether the GST component corresponding to the profiteered amount should be excluded from the total amount to be refunded to consumers – HELD - The profiteered amount is part of the higher consideration that the supplier collected from buyers inclusive of GST. By not passing on the benefit of additional input tax credit, the supplier has effectively retained the GST component as well, which rightfully belongs to the recipients. Both the Central and State Government had no intent of collecting additional GST on the higher price as they had sacrificed their revenue in favor of the buyer. Compelling buyers to pay additional GST on a higher price defeats the intent of the governments and acts against consumer interests. Therefore, the GST collected on the additional realization has rightly been included in the profiteered amount - Anti-profiteering - Levy of interest on profiteered amount - Whether interest under Rule 133(3)(b) of the CGST Rules, 2017 is leviable on the profiteered amount, and whether it can be applied retrospectively to conduct preceding the amendment – HELD – The Section 171 of the CGST Act, 2017 is broad enough to empower the Central Government to prescribe penalty and interest to ensure that suppliers are deterred from retaining benefits meant for consumers. The width and amplitude of the section encompasses the power to ensure that conduct leading to profiteering does not take place. Rule 133(3)(b) providing for interest at eighteen percent per annum is a valid and enabling provision that gives effect to the mandate of the parent statute. The provision for interest was already in existence prior to the cited amendment date. Therefore, the interest liability is not a new provision being applied retrospectively - The respondent is liable to pay interest at 18% per annum on the profiteered amount from the respective dates of collection of the higher amount from each eligible buyer - Anti-profiteering - Penalty under Section 171(3A) - Whether penalty under Section 171(3A) of the CGST Act is attracted in anti-profiteering cases – HELD - Penalty under Section 171(3A) applies where the authority, after holding examination, concludes that any registered person has profiteered. Since the period of contravention extends beyond the date when the provision came into force, penalty is attracted for the period from that date onwards. However, the proviso to the section provides that no penalty is leviable if the profiteered amount is deposited within thirty days of the date of passing the order. This provision grants an opportunity to the supplier to avoid penalty by depositing the entire amount within the prescribed period - The respondent is liable to pay penalty equivalent to ten percent of the profiteered amount for the applicable period, provided the entire profiteered amount is not deposited within thirty days from the date of the order.
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GSTAT Appeal filed wrongly...
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