Case Details: DGAP vs. Kanwar Enterprises Pvt. Ltd. (2026) 40 Centax 272 (Tri.-GST-Delhi)
Judiciary and Counsel Details
- Shri Anil Kumar Gupta, Member (T)
Facts of the Case
The instant case was initiated based on the complaint received by the Standing Committee on Anti-profiteering regarding the non-passing of GST benefits by the Respondent. The complaint was filed by the Executive Director (Vigilance), NTPC, alleging profiteering in respect of construction services supplied by the Respondent for the Project “Ash Dyke Stage-II A NTPC Tanda Thermal Power Project”. It was alleged that the Respondent had failed to pass on the benefit of input tax credit of GST as well as benefit due to reduced GST liability as compared to VAT & Service Tax in the pre-GST period to NTPC Ltd. The Director General of Anti-Profiteering (DGAP) conducted the investigation and noticed that the Respondent had failed to pass on the benefit of the additional input tax credit to the recipient. The Respondent accepted the findings of the investigation and agreed to pass on the benefit to NTPC Ltd. Accordingly, the amount of profiteering and interest was paid by the Respondent to the appropriate authority. The matter reached the GSTAT for ratification of the profiteered amount and interest thereon.
CESTAT Held
The Tribunal held that the Respondent had profiteered by an amount of Rs. 12,20,694, which needs to be passed on to NTPC Ltd. As the work of Rs. 97,66,48,456 has been completed, which is about 76.735% of the total work done in the post-GST period, accordingly, the proportionate profiteering amount for the completed work calculated as Rs. 9,36,700 is liable to be passed to the Applicant. Further, the Respondent was liable to pay interest as applicable to the Applicant.
