DG Anti Profiteering Vs Vasavi And GP Infra LLP (GSTAT)
The matter was heard virtually before the GST Appellate Tribunal (GSTAT), where the Director General of Anti-Profiteering (DGAP) was represented by departmental officers and the Respondent was represented by counsel. In the earlier hearing dated 03.02.2026, the Respondent raised objections regarding the calculation of the alleged profiteered amount as per the latest DGAP Report dated 09.10.2024, which quantified profiteering at Rs. 6,08,89,626/- along with 12% GST.
Pursuant to directions of the Tribunal, the Respondent filed six specific issues on 05.02.2026 challenging the computation. First, the Respondent disputed liability to pay Rs. 2,84,70,596/- (including 12% GST), asserting that ITC benefits had already been passed on and no profiteering occurred. Second, it contended that actual service tax credit of Rs. 5,22,17,411/- availed during the post-GST period should be deducted while computing profiteering, instead of a notional service tax credit of Rs. 2,51,82,279/- calculated by DGAP at 1.7978% of construction cost. The Respondent argued that only ITC on goods constituted additional benefit under GST, since service credit was available even in the pre-GST regime. DGAP relied on the Delhi High Court judgment in Reckitt Benckiser India Pvt. Ltd., stating notional ITC on services should be considered, while the Respondent argued that the High Court only laid down principles and did not specify additions or deductions.
