Case Law Details
Director General of Anti-Profiteering Vs Maheshwari Infratech Pvt Ltd (Competition Commission of India)
Competition Commission of India (CCI) has concluded the anti-profiteering proceedings against Maheshwari Infratech Pvt Ltd, a construction company. After conducting an investigation based on a direction from the National Anti-profiteering Authority (NAA), the CCI found that no other projects were executed by the company except the project “U-Faria,” which was already subject to profiteering determination by the NAA.
Analysis: The CCI’s decision comes after the NAA’s order dated 30.09.2022, in which the DGAP had previously reported that Maheshwari Infratech Pvt Ltd had profiteered an amount of Rs. 24,14,761/- in the “U-Faria” project. However, the NAA later determined the profiteered amount as Rs. 24,78,383/- and ordered the company to pass on the benefit.
Following the NAA’s order, the DGAP was directed under Rule 133(5) of the CGST Rules, 2017, to investigate whether the company had profiteered in any other projects executed under the same GST registration number. However, the DGAP’s investigation, as well as the verification of projects from the UP Real Estate Regulatory Authority (RERA) website and the response from the State Tax Commissioner, revealed that no other projects were undertaken by Maheshwari Infratech Pvt Ltd except for “U-Faria.”
Conclusion: Based on the findings of the DGAP and the verification from the UP RERA website and State Tax Commissioner, the CCI dropped the anti-profiteering proceedings against Maheshwari Infratech Pvt Ltd for other projects. The company was found to have executed only the “U-Faria” project, and the provisions of Section 171 of the CGST Act, 2017, which require passing on the benefit of input tax credit to recipients, were not applicable in this case.
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