Case Law Details
DG Anti Profiteering Vs Duville Estates Pvt. Ltd. (GSTAT)
The case relates to proceedings under the anti-profiteering provisions of the CGST Act, 2017 concerning whether a developer passed on Input Tax Credit (ITC) benefits to homebuyers. During the hearing, the Directorate General of Anti-Profiteering (DGAP) informed the Tribunal that efforts were made to verify the receipt of ITC benefits by 109 homebuyers. Out of these, only 34 homebuyers confirmed receipt of benefits amounting to ₹4,99,539. Two homebuyers had already sold their properties, while 40 did not respond despite repeated attempts.
The Respondent, through its Chartered Accountant, submitted that it was willing to accept the DGAP’s report to conclude the litigation. Accordingly, the Tribunal accepted the DGAP’s report dated 18.12.2024 without further dispute. The profiteered amount was determined at ₹17,75,622. The Tribunal directed the Respondent to pay this amount along with applicable interest to the eligible homebuyers as identified in the report.
The order also directed communication to the jurisdictional CGST/SGST Commissioner for implementation. With these directions, the proceedings were concluded.
FULL TEXT OF THE JUDGMENT/ORDER OF GSTAT
1. The matter was taken up today in Hybrid mode.
2. Shri Rahul Rao Gautam, Additional Assistant Director/Authorised Representative appeared on behalf of the DGAP.
3. Shri Pranay Jangid and Shri Vishwas Singhan, office employees appeared in person for the hearing on behalf of the Respondent
4. Shri Devang Doshi, Chartered Accountant appeared virtually on behalf of the Respondent
5. Authorised Representative of the DGAP informed us that the DGAP has made serious attempts to contact the home-buyers to verify about the receipt of ITC benefit accorded by the Respondent. Out of 109 home-buyers, only 34 home-buyers have accepted that they have received the ITC benefit. The amount is related to these home-buyers is Rs. 4,99,539/-. Two home-buyers have already sold their property. Other 40 home-buyers have been responded inspite of repeated call made by the DGAP
6. The learned Chartered Accountant for the Respondent fairly submitted that in view to end the litigation, they are ready to accept the report submitted by the DGAP.
7. The report of the DGAP dated 18.12.2024 is accordingly accepted. The Respondent is directed to pay the profiteered amount computed by the DGAP as Rs. 17,75,622/- along with the interest as applicable in accordance with the Rule 133(3)(b) of the CGST Rules, 2017 to the eligible home-buyers (as shown in Annexure 21 of the report).
8. Let this order be communicated to the CGST/SGST Jurisdictional Commissioner for necessary action at their end.
9. The proceedings are, accordingly, closed.
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