GST Appellate Tribunal Upholds Limited Profiteering, Rejects Interest and Penalty Claims:

GST Appellate Tribunal Upholds Limited Profiteering, Rejects Interest and Penalty Claims The present appeal was filed by the Director General of Anti-Profiteering (DGAP) against Dange Enterprise before the GST Appellate Tribunal, New Delhi. The case arose out of an anti-profiteering investigation conducted by the DGAP for the period from 15.11.2017 to 30.06.2019. In its first report, the DGAP alleged profiteering of Rs. 28,74,577/-. The matter was earlier examined by the erstwhile National Anti-Profiteering Authority, which remanded the case to the DGAP for fresh investigation under Rule 133(4) of the CGST Rules. After that, further investigation was undertaken, and a revised report dated 20.11.2025 was submitted, determining the profiteered amount at Rs. 457,683/-. During the proceedings before the Tribunal, the respondent accepted the profiteered amount but contested the levy of interest at 18% and the imposition of a penalty. Issue Before Tribunal: Whether interest at 18% and penalty could be imposed on the respondent under CGST Rules for alleged profiteering during a period prior to the coming into force of the amended provisions. Tribunal's Decision: The GST Appellate Tribunal partly accepted the DGAP’s report and upheld the finding of profiteering only to the extent of Rs. 4,57,683/-. The Tribunal categorically held that the amendment to Rule 133(3)(c) of the CGST Rules, which provides for interest at 18% on the profiteered amount, is prospective in nature and cannot be applied retrospectively. Relying on CIT v. Vatika Township Pvt. Ltd., the Tribunal held that a provision creating a new financial liability must be applied prospectively unless expressly stated otherwise. The Tribunal also held that the provisions relating to penalty were inserted only in 2020 and therefore could not be applied to the investigation period, which ended on 30.06.2019. Therefore, no interest or penalty was leviable on the respondent. The respondent was directed to deposit the profiteered amount of Rs. 4,57,683/- in the Consumer Welfare Fund of the Centre and the States in equal proportion. To Read Full Judgment, Download PDF Given Below