Case Law Details
Sh. Sourav Majee Vs Bengal Peerless Housing Development Company Ltd. (NAA)
The National Anti-Profiteering Authority (NAA or Authority) finds from the above table that substantial Cenvat Credit of Rs. 7.32 crore was available to the Respondent in 2016-17 i.e during pre-GST period. The DGAP Report dated 12.11.2021 is silent on the above said amount of Cenvat Credit and also whether the Respondent was maintaining separate accounts for each of its projects. The DGAP has not investigated the reason for the availability of huge amount of Cenvat Credit in pre-GST period and its impact (i.e of input services, inputs or VAT) in the subsequent projects, especially in view of the fact that no categorical findings have been given informing about maintenance of separate accounts for various projects. The above said availment of credit during 2016-17 and April 2017 to June 2017 indicates that the Respondent was developing various projects and there appears to be reason to believe that in such projects may be cases of profiteering which need to be investigated under Section 171 of the CGST Act, 2017.
It is observed that the above provision of the RERA Act, 2016 makes it mandatory for a real estate developer/promoter to maintain separate bank accounts for each of his projects registered separately under the RliRA Act, 2016. In view of this, there arises the need to revisit the investigation to ascertain if the Respondent has passed on the benefit of ITC to the homebuyers/customers/recipients of supply all the projects undertaken by him, by a commensurate reduction in the prices of the residential or commercial units supplied by him in terms of Section 171 of the CGST Act, 2017.
As discussed above in para 9 and in the above facts and averments the Authority has reason to believe that the Respondent needs to be investigated for profiteering with respect to all projects undertaken by him and hence, directs the DGAP under Rule 133(4) and 133(5) to investigate all the projects of the Respondent (which have not been already investigated) including the instant project i.e. `Avidipta II’ under the same GST registration from the perspective of Section 171 of the CGST Act, 2017 and submit the complete investigation report for all such Projects under this single GST Registration.
FULL TEXT OF ORDER OF NATIONAL ANTI-PROFITEERING AUTHORITY
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