2021 (3) TMI 370 - HC - GST

Profiteering - the investigation with regard to the input tax credit was not carried out by respondent no. 3/DGAP - HELD THAT - Issue notice. Mr. G. Tushar Rao accepts service on behalf of respondent no. 1/UOI while Mr. Zoheb Hossain accepts service on behalf of respondent no. 2/NAPA. On steps being taken, notice shall issue to the respondent no. 3/DGAP via all means including e-mail. List the matter on 12.07.2021.

Summary

Issues:
1. Discrepancy between the views of National Anti-Profiteering Authority (NAPA) and Directorate General of Anti-Profiteering (DGAP) regarding input tax credit.
2. Instructions received by the respondent's counsel leading to a change in representation.
3. Need for further examination of the input tax credit investigation.
4. Stay on the operation of the impugned order passed by NAPA.

Analysis:

1. The judgment addresses the discrepancy between the views of NAPA and DGAP regarding the petitioner passing on input tax credit amounting to ?2,99,81,701. While DGAP indicated the passing on of credit, NAPA concluded that no penalty is payable by the petitioner. The court sought instructions specifically on the aspect of interest, leading to the revelation that the investigation related to input tax credit was not conducted by DGAP, necessitating further examination.

2. The respondent's counsel, Mr. Hossain, informed the court that he now represents only respondent no. 2/NAPA due to conflicting views between NAPA and DGAP. This change in representation was prompted by the differing positions taken by the two authorities involved in the matter.

3. In light of the revelation that the investigation related to input tax credit was not carried out by DGAP, the court issued a notice for further examination of the matter. The respondents were directed to file counter-affidavits within four weeks, with a provision for rejoinders before the next hearing date. The court also ordered a stay on the operation of the impugned order passed by NAPA in the interim.

4. The judgment concluded by scheduling the next hearing for 12.07.2021, indicating the court's intention to delve deeper into the discrepancies between NAPA and DGAP regarding the input tax credit issue. The stay on the impugned order signifies the court's cautious approach pending further examination and resolution of the conflicting views presented by the involved authorities.