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Case Law Details

Case Name : In re Indian Oil Corporation Ltd. Vs. Gopal Teknocon Private Limited (National Anti-Profiteering Authority)
Appeal Number : I.O. No. 03/2022
Date of Judgement/Order : 10/05/2022
Related Assessment Year :
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In re Indian Oil Corporation Ltd. Vs. Gopal Teknocon Private Limited (National Anti-Profiteering Authority)

The brief facts of the case are that an Application was filed by the Applicant No. 1 under Rule 128 of the CGST Rules, 2017 before the State Screening Committee on Anti-Profiteering alleging profiteering by the Respondent, in respect of awarding of a contract for Maintenance and Inspection of Crude Oil Storage Tanks vide which the Applicant No. 1 was not satisfied with the amount of discount offered and had also alleged that the Respondent had not passed on the benefit of Input Tax Credit to him by way of commensurate reduction in price, in terms of Section 171 of the Central Goods & Services Tax Act, 2017.

The DGAP vide Para 18 (e) of his Report has also stated that the Respondent had not made any purchases in the pre GST era and hence there was no availability of CENVAT/VAT which could be compared with the ITC of post GST era. In this regard it would be appropriate to mention that the Respondent has himself claimed to have passed on benefit of ITC to the Applicant No. 1 amounting to Rs. 23,22,493.68/- in respect of both the Contracts. It is quite apparent from the submissions of the Respondent relied upon by the DGAP in his Report that he has computed the above amount by comparing the tax rates prevalent during the pre GST period and the ITC available on VAT. Therefore, it was incumbent upon the DGAP to investigate whether the methodology and the computations of the benefit of GST so made by the Respondent were correct or not and submit his findings to this Authority.

 Therefore, this Authority hereby directs the DGAP to re-investigate the matter under Rule 133 (4) of the CGST Rules, 2017 on the following issues:-

i. Whether the Applicant No. 1 is entitled to and the Respondent is liable to pass on the benefit of ITC when the prices quoted by Respondent were based on the prices and rates of tax leviable on the goods and services during the pre-GST period when full benefit of GST was not available and when additional ITC benefit was available to the Respondent after coming in to force of the GST at the time of supply of the service?

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July 2024