DG Anti Profiteering Vs Pacifica Developers Pvt. Ltd. (GSTAT)
The proceedings arose from an investigation report dated 06.12.2024 submitted by the Director General of Anti-Profiteering (DGAP) under Section 171 of the Central Goods and Services Tax Act, 2017 read with Rule 129 of the CGST Rules. The investigation was initiated on the basis of a complaint dated 16.10.2019 alleging that the Respondent had failed to pass on the benefit of input tax credit (ITC) by way of commensurate reduction in price after implementation of GST with effect from 01.07.2017, in respect of a residential project named “Reflections.”
Earlier, the DGAP had submitted a report dated 31.12.2020 under Rule 129(6), which was pending decision before the CCI. Subsequently, in Writ Petition No. 7743/2019 and connected matters, the Hon’ble High Court of Delhi, by judgment dated 29.01.2024, observed that the methodology adopted for the real estate sector was faulty. Taking note of these observations, the CCI, vide letter dated 21.03.2024, directed the DGAP to conduct a re-investigation under Rule 129 of the CGST Rules.
In its report dated 06.12.2024, the DGAP examined the residential project “Reflections,” comprising 468 residential units across nine towers (Towers A to I), each having twelve floors and a penthouse floor. The project commenced in 2012 and received its Occupancy Certificate on 17.09.2018. The investigation was confined strictly to the construction services in respect of this project.
