DGAP Vs Suktam Enterprise (GSTAT)
The case arose from Interim Order No. 07/2022 dated 10.05.2022 concerning M/s S.R. Lifesciences, directing the Directorate General of Anti-Profiteering (DGAP) to investigate the supplier chain under Rule 133(5) of the CGST Rules, 2017. The DGAP submitted an investigation report dated 31.08.2022 to the National Anti-Profiteering Authority (NAA).
Subsequently, Interim Order No. 03/2023 dated 31.07.2023 directed further investigation into two suppliers: M/s Shree Suktam Enterprise, Ahmedabad, and M/s Baxium Health Science, Ahmedabad. The DGAP was tasked with determining whether these suppliers had passed on the benefit of input tax credit under Section 171 of the CGST Act, 2017, specifically for the product “ECLAT SERUM 30gm.”
On 09.08.2023, the DGAP issued a notice under Rule 129 to M/s Suktam Enterprise, requesting confirmation of whether GST rate reductions from 15.11.2017 were passed on to recipients, along with supporting documentation. The notice, covering the period from 15.11.2017 to 31.07.2023, was returned unserved.
Subsequent efforts by the DGAP included writing to the Special Commissioner of Gujarat State Tax and the Commissioner of CGST, Ahmedabad, to serve the notice and provide relevant details. A spot visit conducted on 06.09.2023 revealed that the business premises listed for Suktam Enterprise were occupied by another firm, M/s C.K. Enterprises, which had no knowledge of Suktam Enterprise.
