Case Law Details
Director-General of Anti-Profiteering Vs Dange Enterprises (National Anti-Profiteering Authority)
We observe that as an investigating agency, the DGAP has been conferred with wide-ranging powers under Rules 129 and 132 of the CGST Rules read with Section 171 of the CGST Act, 2017 to summon any relevant record which may be required for conducting an investigation and the DGAP should have exhausted all the options available to him to get the requisite data from the Respondent. Since the respondent had not furnished the requisite data for a significant period, we find this was a fit case for exercise of all the powers granted under the CGST Act 2017 and the CGST’ Rules 2017 to the DGAP to summon the data/information and any other records for computation of the amount of profiteering accordingly. We take note that the DGAP has neither taken available appropriate coercive action against the Respondent under Rule 132 of the CGST Rules, 2017 nor the DGAP has initiated prosecution against the Respondent under Section 122 of the CGST Act, 2017. Hence we are of the view that the DGAP has still not exhausted all the legal recourses available under the CGST Law to arrive at an evidence-based conclusion in this matter.
We also observe that the Respondent has abysmally failed to comply with the repeated directions of not only the DGAP to furnish the data/information etc. during the investigation but also the repeated directions of this Authority over a five-month period to furnish the same. We also take note of the fact that the same data/information has been supplied in a timely manner by all the other franchisees of SSIPL who are/have been investigation by the DGAP and that none of the other Subway franchisees have advanced such reasons, as the Respondent has done for non-submission of data/information requisitioned from him by the DGAP.
Therefore, without going into any merits/other submissions filed by the Respondent at this stage, we find this case to be a fit case for revisiting the investigation by the DGAP and for computing the amount of profiteering based on the data/records to be submitted by the Respondent and SSIPL, the franchisor. We direct the Respondent to furnish all the data/information to the DGAP within 30 days of this order under any circumstances, failing which the DGAP shall use all the means, available within the law, to obtain the requisite data/information and complete the investigation and submit his report to this Authority. Thus, we direct the DGAP to reinvestigate the matter as per the provisions of Rule 133(4) of the CGST Rules 2017.
FULL TEXT OF ORDER OF NATIONAL ANTI-PROFITEERING AUTHORITY
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