DG Anti Profiteering Vs Merit Magnum Construction (GSTAT)
Refund of Anti-Profiteering Amount of ₹2.67 Lakh With 18% Interest Directed; No Penalty Under Section 171(3A): GSTAT
Material Facts
The proceedings arose from an application filed before the Maharashtra State Screening Committee on Anti-Profiteering under Section 171 of the CGST Act, 2017 alleging that the respondent builder, Merit Magnum Construction (formerly Vimal Builders), failed to pass on the benefit of additional Input Tax Credit (ITC) to a flat purchaser in the “Everest Countryside” project through a commensurate reduction in price. The Screening Committee forwarded the matter to the Standing Committee, which referred it to the Director General of Anti-Profiteering (DGAP) for investigation.
Procedural History
The DGAP submitted an investigation report dated 31.08.2021 before the erstwhile National Anti-Profiteering Authority (NAA). Following the cessation of the NAA, anti-profiteering matters were transferred to the Competition Commission of India (CCI). On 20.03.2024, the CCI remanded the matter to the DGAP for reinvestigation after the Delhi High Court in Reckitt Benckiser India Pvt. Ltd. v. Union of India held that the methodology previously adopted for real estate cases was flawed.
The DGAP submitted a fresh report dated 11.12.2024 before the GST Appellate Tribunal, computing profiteering at ₹10,00,084 plus GST of ₹1,20,010, aggregating ₹11,20,094. During the proceedings, the Tribunal directed the Respondent to furnish Chartered Accountant-certified data restricted to the period ending with the issuance of the Occupancy Certificate. Based on the revised data, the DGAP submitted a supplementary report dated 30.06.2026 recomputing the profiteered amount.
