Case Law Details
Hussain Shoaib Kothalia Vs Dra Aadithya Projects Pvt. Ltd. (NAA)
1. The present Report dated 26.03.2020 has been received from the Applicant No. 3 i.e. the Director General of Anti-Profiteering (DGAP) after detailed investigation under Rule 129 (6) of the Central Goods & Service Tax (CGST) Rules, 2017. The brief facts of the case are that the DGAP had received a reference from the Standing Committee on Anti- profiteering on 28.06.2019 to conduct a detailed investigation in respect of an application filed under Rule 128 of the Central Goods and Services Tax Rules, 2017 by the Applicant No. 1 alleging profiteering by the Respondent in respect of purchase of a flat in the Respondent’s project “Pristine Pavilion Phase-III”. The Applicant No. 1 had alleged that the Respondent had not passed on the benefit of input tax credit (ITC) to him by way of commensurate reduction in prices and charged GST @12% on the amount due to him against payments.
2. Further, the Applicant No. 2 had also filed an application before the Standing Committee on Anti-Profiteering which was examined by the Standing Committee on Anti-Profiteering in its meeting held on 13.09.2019 and forwarded to the DGAP for detailed investigation in the matter.
3. The DGAP, on receipt of the aforesaid references from the Standing Committee on Anti-profiteering, issued a Notice dated 12.07.2019 under Rule 129 (3) of the CGST Rules, 2017, calling upon the Respondent to reply as to whether he admitted that the benefit of input tax credit had not been passed on to the recipients by way of commensurate reduction in price and if so, to suo moto determine the quantum thereof and indicate the same in his reply to the Notice as well as to furnish all documents in support of his reply. Further, the DGAP gave an opportunity to the Respondent to inspect the non-confidential evidence/information which formed the basis of the above said Notice, during the period from 18.07.2019 to 22.07.2019. However, the Respondent did not avail of the said opportunity. Vide email dated 23.03.2020, the Applicant No. 1 and 2 were also given an opportunity to inspect the non-confidential documents/reply furnished by the Respondent. However, the Applicant No. 1 vide his e-mail dated 23.03.2020 stated that “due to the outbreak of Corona Virus and country wide lockdown, I will not be able to visit the office at Delhi as I stay in Chennai to inspect the Non-confidential information submitt by M/s DRA.”
4. The DGAP has covered the period from 01.07.2017 to 30.06.2019 during the current investigation. The time limit to complete the investigation was extended up to 31.03.2020 by this Authority vide its order dated 12.12.2019, in terms of Rule 129 (6) of the Rules.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
