Director General of Anti-Profiteering Vs Alton Buildtech India Pvt. Ltd (National Anti-Profiteering Authority)
Perusal of the record reveals that the Project `Aangan’ consist of three Phases viz. I, II and III. Regarding Phase I the DGAP vide Report dated 14.06.2019 had alleged Profiteering of Rs. 6,24,48,008/- and the same had been confirmed by this Authority vide its Order dated 65/2020 dated 16.10.2020. Vide the same order DGAP was directed to investigate Phase II and Phase III. It has been revealed that the project is an affordable Housing project as notified by Town & Country Planning Department, Government of Haryana vide Notification dated 19.08.2013. The RERA registration for the Phase II of the project was done on 22.12.2017 and the Phase II was advertised in newspapers on 18.01.2018 and 25.01.2018 and finally the draw of lots for allotment of flats was done on 12.06.2018. Thus the “–project had been registered in post-GST, booking and receipt of payments have taken place post introduction of GST and there is no pre GST tax rate or input tax credit structure which can be compared with the post-GST tax rate and input tax credit. The DGAP has also submitted that the Environment clearance for Phase-II was issued on 02.05.2019 and thereafter the construction work had started at site.
The chronology of above events shows that the service rendered by the Respondent by way of construction and development of the project was not in existence during the pre-GST regime. Also the Phase III of the project is it yet to be launched and has not been registered with RERA till date.
In the present case for Phase II the draw of lots, allotment of units and receipt of payments has taken place in the post-GST era. It is also apparent from the record that the Respondent has received the Environment Clearance from the State Environment Impact Assessment Authority Haryana on 02.05.2019 before which he could not have started the execution of the project. On the basis of the sequence of the above events it could be safely concluded that the above project has been started after coming in to force of the GST w.e.f. 01.07.2017. It is also clear that the homebuyers were allotted flats only after coming in to force of the GST w.e.f. 01.07.2017. As project was launched after implementation of the GST w.e.f. 01.07.2017, apparently there was no pre-GST tax rate or input tax credit availability that could be compared with the post-GST tax rate and the input tax credit, to determine whether there was any benefit that was required to be passed on by way of reduced prices. Phase III of the project it is yet to be launched and had not been registered with RERA till date.
Based on the above facts it is established that the Respondent has not contravened the provisions of Section 171 (1) of the CGST Act, 2017 and we find no merit in the instant case and the same is accordingly dismissed.
FULL TEXT OF ORDER OF NATIONAL ANTI-PROFITEERING AUTHORITY
1. The Present Report dated 28.01.2021 has been received from the Applicant i.e. the Director General of Anti-Profiteering (DGAP) in response to the Authority’s Order No. 65/2020 dated 16.10.2020 wherein Profiteered amount of Rs. 6,24,48,008/-was confirmed against the Respondent and the DGAP was also directed to investigate other two parts of his Project Aangan i.e Phase II & Ill under Rule 133(5) of the Central Goods & Service Tax (CGST) Rules, 2017.
2. After the receipt of the NAA’s Order No. 65/2020 dated 16.10.2020 a Notice under Rule 129 of the Rules was issued by the DGAP on 12.11.2020, 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 home buyers and furnish all documents in support of his reply.
3. The period covered in the present investigation is from July 2017 to September, 2020.
4. The DGAP has Reported that the Respondent in response to the Notice dated 12.11.2020 has submitted his replies vide letters and e-mails dated 04.12.2020, 31.12.2020, 08.01.2021, 12.01.2021 and 18.01.2021 which could be summarised as follow:
(i) The Respondent has been engaged in construction of residential complexes under the ‘Affordable Housing Policy, 2013’ framed by the State of Haryana.
(ii) The Project- Aangan, Phase-II has been launched much after the introduction of GST and Phase- III was yet to be launched. The Respondent has submitted the chronology of the events related to Aangan, Phase- II and Phase- III and the same is reproduced below:
Aangan Phase-II (Launched in 2018)
