Case Law Details
Sh. Deepak Garg Vs JKG Construction Pvt. Ltd. (NAA)
The present Report dated 31.08.2021 had been received from the Applicant No. 2 i.e. the Director General of Anti-profiteering (DGAP) after a detailed investigation under Rule 129(6) of the Central Goods & Services Tax (CGST) Rules, 2017 alleging profiteering by the Respondent in respect of the purchase of shops in the Respondent’s project ” JKG Palm Court ” by not passing on the benefit of Input Tax Credit (ITC) by way of commensurate reduction in prices after implementation of GST w.e.f. 01.07.2017. The Standing Committee forwarded the copy of the complaint of Applicant No. 1 to the DGAP for detailed investigation.
Held by NAA
The Authority finds that, to verify the claims of the Respondent of having passed on the benefit of ITC to the recipients of supply, the DGAP had sent emails dated 17.08.2021 to only 324 buyers (whose email addresses were provided by the Respondent). In response to these 324 emails, 23 home buyers had denied the receipt of any benefit. Hence, this Authority finds that, such verification is not comprehensive, complete, definite or conclusive and hence cannot be accepted.
The Authority finds that the Respondent has profiteered by an amount of Rs. 5,14,06,920/- during the period of investigation i.e. 01.07.2017 to 31.10.2020. The Authority determines an amount of Rs. 5,14,06,920/- (including 12% GST) under section 133(1) as the amount profiteered by the Respondent from his home buyers/shop buyers/customers/recipients of supply in the impugned Project (as per Annexure-A to this Order), including Applicant No. 1, which shall be refunded by him along with interest @18% thereon, as prescribed, from the date when the above amount was profiteered by him till the date of such payment, as per the provisions of Rule 133 (3) (b) of the GCST Rules 2017. The amount profiteered is Rs. 1,99,182/- in respect of Applicant No.1 .
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