DG Anti Profiteering Vs Pacific Development Corporation Ltd. (GSTAT)
The case arose from a report dated 27.12.2024 submitted by the Directorate General of Anti-Profiteering (DGAP) following complaints alleging that the Respondent charged GST at a higher rate of 12% instead of 1% in respect of its project “PDCL-Golf Estate.” The applications were referred by the Standing Committee on Anti-Profiteering for detailed investigation under Rule 129 of the CGST Rules, 2017.
The DGAP conducted an investigation for the period from 01.07.2017 to 31.05.2020 and submitted an earlier report. However, pursuant to the judgment of the Hon’ble Delhi High Court dated 29.01.2024 prescribing a revised methodology, the matter was re-investigated.
The project consisted of seven towers (A to G), of which Towers A, E, and F were excluded from the scope of investigation. Towers B, C, D, and G were examined, comprising 1164 units with a total saleable area of 19,10,727 sq. ft. Out of these, 364 units (5,82,773 sq. ft.) sold before the completion certificate were included in the investigation, while 800 units sold after the completion certificate were excluded.
The Respondent provided Chartered Accountant-certified data on input tax credits and purchase values. In the pre-GST period, CENVAT credit of service tax was ₹7,31,17,955, with no VAT credit, and the total purchase value was ₹234,38,71,562. In the post-GST period, GST input tax credit was ₹5,06,28,263, and the purchase value was ₹151,68,51,948.
