2025 (11) TMI 424

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....TC) benefits related to the contract for Maintenance and Inspection of Crude Oil Storage Tanks. 2. The complaint was originally filed by M/s Indian Oil Corporation (Pipeline Division), Rajkot, alleging that the Respondent had not passed on the benefit of Input Tax Credit by way of commensurate reduction in price for the contracted works undertaken post-GST implementation. The Standing Committee, after due consideration, referred the matter to the DGAP under Rule 129(1) of the Rules on 07.08.2020, and the DGAP issued a Notice of Investigation dated 04.09.2020, covering the period from 01.07.2017 to 31.07.2020 3. The DGAP completed its initial investigation and submitted a report dated 29.01.2021 before the erstwhile National Anti- Prof....

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....gime* A 85,26,685 2 Credit of VAT available for the Respondent in respect of two tanks** B 58,48,993 3 Profiteering on account of Input Tax Credit for two tanks C= (A - B) 26,77,692 4 Benefit of Input Tax Credit already passed on by the Respondent for two tanks D 23,22,494 5 Final Profiteering for two Tanks E= (C - D) 3,55,198 6. The Total ITC availed post-GST was Rs. 85,26,685/- as against a pre-GST notional VAT credit of Rs. 58,48,993/-. The net incremental ITC benefit was thus Rs. 26,77,692/-, of which Rs. 23,22,494/- had already been passed on by way of GST-related discounts. The differential balance of Rs. 3,55,198/- was identified as the residual ITC benefit to be passed on to I....

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....on completion of the transaction. 10. The Respondent has contended that, by taking this voluntary step, the purpose and spirit of anti-profiteering proceedings under Section 171 of the CGST Act stand fulfilled, as the benefit identified by DGAP has been ensured to reach the ultimate recipient. It has been further averred that the Respondent has cooperated at every stage of the proceedings, demonstrated full transparency, and acted without any intent to retain undue benefit or engage in profiteering. In view of this bona fide compliance, closure of proceedings has been sought. 11. This Tribunal has carefully examined the DGAP's findings, the erstwhile NAA's directions, and the Respondent's written submissions. It is observed that the D....