DG Anti Profiteering Vs Paarth Infrabuild Pvt. Ltd. (GSTAT)
A complaint was filed alleging profiteering in respect of construction services supplied in a housing project in Lucknow. It was claimed that the developer had not passed on the benefit of Input Tax Credit (ITC) to the complainant by way of commensurate reduction in price, in violation of Section 171 of the CGST Act, 2017.
The complaint was examined by the Standing Committee and referred to the Director General of Anti-Profiteering (DGAP) for detailed investigation. An initial report dated 11.10.2022 was submitted by the DGAP and examined by the Competition Commission of India (CCI), the erstwhile Authority. By order dated 21.03.2024, the CCI remanded the matter to the DGAP for re-investigation in terms of the Delhi High Court judgment in Reckitt Benckiser India Pvt. Ltd. v. Union of India.
Pursuant to the remand, the DGAP conducted a detailed investigation covering the period from 01.07.2017 to 10.11.2022, the date of project completion. A notice was issued to the developer seeking its response on whether the ITC benefit had been passed on and, if not, to determine the quantum suo motu. The developer submitted a reply along with supporting documents, which were examined.
