Case Law Details
Abhilash Mohanty Vs Vertex Homes Pvt. Ltd (Competition Commission of India)
The Competition Commission of India (CCI) has recently ordered a re-examination of the Vertex Homes Pvt. Ltd case, directing the Director General of Anti-Profiteering (DGAP) to provide a comprehensive report. This decision stems from a detailed investigation initiated under Rule 129(6) of the Central Goods & Service Tax (CGST) Rules, 2017, based on allegations of profiteering by Abhilash Mohanty against Vertex Homes Pvt. Ltd.
The crux of the case revolves around the allegation that Vertex Homes Pvt. Ltd failed to pass on the benefit of Input Tax Credit (ITC) to customers, specifically regarding the sale of Unit No. F-501 in the “Vertex Panache” project located at Kokapet, Gachibowli, Hyderabad, following the implementation of GST from July 1, 2017.
Upon receiving a reference from the Standing Committee on Anti-profiteering, the DGAP initiated an investigation. The DGAP issued notices to Vertex Homes Pvt. Ltd under Rule 129 of the Rules, seeking clarification on whether the benefit of ITC had been passed on to customers through a commensurate reduction in prices.
In response, Vertex Homes Pvt. Ltd submitted detailed replies, maintaining that the price quoted to customers post-GST included the benefit of ITC, as stated explicitly in the sale deeds. However, due to non-receipt of certified copies of sale deeds and contact information of buyers, the DGAP could not verify these claims fully.
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