GSTAT Drops Anti-Profiteering Case Against Eclat Serum Supplier After DGAP Fails to Trace Firm
Sangeetha Prathap
The GST Appellate Tribunal (GSTAT), Delhi has dropped anti-profiteering proceedings against Shree Suktam Enterprise, a Gujarat-based supplier linked to S R Lifesciences, after the Director General of Anti-Profiteering (DGAP) reported that the firm could not be traced and no evidence could be gathered to examine profiteering. The final order, dated 12 November 2025 and delivered by Technical Member A. Venu Prasad, concluded that the investigation could not proceed in the absence of any documentary material or response from the supplier.
The matter originated from an interim direction issued in May 2022 in the case of S R Lifesciences, which required the DGAP to investigate the entire supplier chain under the CGST Rules. A subsequent direction in July 2023 expanded the scope of inquiry to include Shree Suktam Enterprise in Ahmedabad, with the objective of determining whether the benefit of a GST rate reduction on Eclat Serum 30gm from 28% to 18% had been passed on to consumers between November 2017 and July 2023.
Pursuant to this direction, the DGAP issued a notice to Shree Suktam Enterprise in August 2023 seeking details of supplies, costing, pricing, and evidence of rate-reduction benefit. The notice was returned undelivered with the remark “LEFT”. The DGAP then sent repeated communications to State Tax and Central GST authorities in Gujarat requesting assistance in serving the notice and verifying the firm’s existence, but the efforts produced no useful information.
A spot inspection by State Tax officials revealed that the registered address was occupied by C.K. Enterprises, an angadia business, whose owner stated that he had no knowledge of Shree Suktam Enterprise and had been operating from the premises for several months. Additional details and returns forwarded by the jurisdictional authorities were also of no assistance in establishing whether any supply of Eclat Serum 30gm had been made or whether any GST benefit had been passed on.
The DGAP ultimately reported that, due to the unavailability of the firm and the absence of any records, it was impossible to verify profiteering or even establish whether any transaction had occurred. The Tribunal noted that the DGAP had exhausted all possible avenues through multiple letters to State and Central authorities, but the investigation could not progress without basic data.
While dropping the proceedings, the Tribunal also remarked that the department may independently examine whether Shree Suktam Enterprise was involved in bogus billing towards S R Lifesciences or any other registered entity. If such evidence emerges, the jurisdictional commissionerate may initiate appropriate action under the CGST Act, 2017.
Holding that the matter could not be sustained without the respondent’s participation or documentary support, the Tribunal directed closure of the case and directed that copies of the order be sent to the respective GST authorities for any further administrative steps.
Cause Title: DGAP vs. Shree Suktam Enterprise
Case No: NAPA/157/PB/2025
Coram: Hon’ble Sh. A. Venu Prasad, Member (Technical)
