2026 (2) TMI 718

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....after referred to as the "CGST Rules"). The investigation was initiated pursuant to a complaint referred by the Standing Committee on Anti-Profiteering on an application filed by the Executive Director (Vigilance), NTPC, 6th Floor, Engineering Office Complex, Plot-A-8A, Sector-24, Noida-201301 (hereinafter referred as Applicant), alleging profiteering in respect of construction services supplied by M/s Kanwar Enterprises Pvt. Ltd., C-73, Sector-73, Noida, Gautam Budh Nagar, Uttar Pradesh-201301, (hereinafter referred to as "the Respondent") for the Project "Ash Dyke Stage-II A NTPC Tanda Thermal Power Project", situated at Uttar Pradesh. It was alleged that the Respondent had failed to pass on the benefit of input tax credit of GST as well ....

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....pe, and instruments-were to be considered for calculating profiteering on the basis of their total expected consumption over the project, with the profiteering amount to be proportionately passed on to NTPC for amounts already billed and to be adjusted similarly in future billings. Profiteering calculated by the DGAP is as follows:- Calculation of Profiteering Service/Materials Taxable Value as per agreement Rs. Rate of C. ExciseRs. Cost to supplier after adjusting for Margin* of Profit @12 % Rs. Taxable Value/Cost to Supplier after adjusting for Central Excise not applicable in pre-GST regime Rs. Reduction in cost due to Central Excise Duty being subsumed in GST and available as ITC Rs. (A) (B) (C) (D....

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....sions on the report of the DGAP. 6. The Respondent, vide letter dated 01.12.2025, accepted the profiteered amount determined in the DGAP's report dated 25.10.2024, stating that after internal verification and reconciliation of the DGAP's calculations, the differential benefit under GST was acknowledged in good faith and as a measure of compliance with Section 171 of the CGST Act, 2017, while clarifying that there was no mala fide intent and that any non-passing of transitional benefit was inadvertent due to implementation challenges during the GST transition. Subsequently, NTPC, through an email dated 02.12.2025 from its Addl. General Manager (Vigilance), indicated that he was not associated with the contract and provided details of the ....