The Calcutta High Court has directed the Goods and Services Tax Appellate Tribunal (GSTAT) to conclude pending anti-profiteering proceedings after taking into account a subsequent investigation report of the Director General of Anti-Profiteering (DGAP) that substantially exonerated the company.
The bench of Justice Smita Das De observed that once the investigating authority itself concludes that no profiteering has occurred, there is little justification for allowing the proceedings to remain pending indefinitely.
The matter arose from an application filed in a pending writ petition challenging an order dated September 30, 2022, passed by the erstwhile National Anti-Profiteering Authority (NAA). During the pendency of the writ proceedings, the DGAP completed a fresh investigation and submitted its report before the GST Appellate Tribunal on March 12, 2026. According to the petitioner, the report recorded findings substantially in its favour and concluded that no profiteering had been established.
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The company contended that, in light of the favourable investigation report, no factual or substantive dispute survived for adjudication before the Tribunal. It further informed the High Court that the GSTAT had directed it to obtain clarification from the High Court regarding the status of the pending writ petition before proceeding further.
The petitioner urged the High Court to direct the GST Appellate Tribunal to dispose of the pending anti-profiteering proceedings without further delay. It argued that the DGAP’s report—the very foundation for further adjudication—had already concluded that there was no profiteering, making prolonged continuation of the proceedings unnecessary.
The tax authorities fairly acknowledged before the Court that the DGAP’s investigation report was substantially favourable to the petitioner. However, they sought liberty to file objections or exceptions to the investigation report before the appropriate forum, if considered necessary.
The petitioner opposed this request, arguing that since the proceedings had been initiated on the basis of the DGAP’s investigation itself, the department could not legitimately seek to dispute the conclusions reached by its own investigating authority after finding no profiteering.
After hearing both sides, the High Court held that the petitioner had established a prima facie case warranting judicial intervention. The Court noted that the investigation report dated March 12, 2026, which forms the basis of the subsequent adjudication, was admittedly in favour of the petitioner.
The Court observed that where the authority entrusted with investigating allegations of profiteering has itself concluded that no profiteering has taken place, there is no justification for keeping the proceedings pending indefinitely. It further noted that the litigation had already remained pending since 2022, making expeditious disposal necessary in the interests of justice.
Accordingly, the High Court directed the GST Appellate Tribunal to dispose of the proceedings arising out of the impugned NAA order dated September 30, 2022, by arriving at a conclusive finding on the basis of the DGAP’s investigation report. The Tribunal has been directed to complete the exercise on or before August 31, 2026, after providing all parties with an opportunity of hearing.
While issuing the time-bound direction, the High Court clarified that the question of whether the department may file objections or exceptions to the DGAP’s investigation report would be decided independently by the GST Appellate Tribunal in accordance with law. The Court therefore left that issue open without expressing any opinion on its merits.
The Court disposed of the interim application and directed that the main writ petition be listed in the Monthly List of September 2026.
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