Case Law Details
Director General of Anti-Profiteering Vs Vishwanath Builders Projects Ltd (Competition Commission of India)
The case of Director General of Anti-Profiteering (DGAP) Vs Vishwanath Builders has recently garnered attention due to its complex layers related to the application of anti-profiteering provisions under Section 171 of the CGST Act, 2017. This article aims to provide an in-depth analysis of the case, involving the implications of pre and post-GST era projects and their compliance with Section 171.
Analysis: The DGAP initiated an investigation against Vishwanath Builders based on the directive of the National Anti-Profiteering Authority (NAA) to examine profiteering in relation to various projects. The DGAP’s report suggested no contravention of Section 171(1) of the CGST Act, 2017, stating that Vishwanath Builders didn’t benefit from additional input tax credit post-GST. The report further outlined three projects – Vishwanath Sopan, Vishwanath Sarathya, and Vishwanath Samam – each having unique GST implications. The project Vishwanath Sarathya, which started in the pre-GST era and completed post-GST, had a profiteered amount determined by the NAA. The other two projects, Vishwanath Sopan (completed in pre-GST era) and Vishwanath Samam (initiated post-GST era), fell outside the ambit of Section 171.
FULL TEXT OF THE ORDER OF COMPETITION COMMISSION OF INDIA
1 The present Report dated 21.02.2023 had been received from the Director General of Anti-Profiteering (hereinafter referred to as the “DGAP”) on 23.02.2023 by the Competition Commission of India (hereinafter referred to as the “Commission”) after a detailed investigation under Rule 133(5) of the Central Goods & Service Tax (CGST) Rules, 2017 (hereinafter referred to as the “Rules”). The brief facts of the case are that the erstwhile National Anti-Profiteering Authority (hereinafter referred to as the “NAA”) in the case of M/s Vishwanath Builders, 17, N. D. Avenue, Opposite Club 07, Sky City Road, Off S P Ring Road. Shela, Ahmedabad-380058 (hereinafter referred to as “the Respondent”), vide Para-13 of the Order No. 61/2022 dated 26.08.2022 had directed the DGAP to investigate profiteering in relation to projects other than the project “VISHVVANATH SARATHYA” being constructed by the Respondent under single GST Registration No. i.e. 24ABEPV6263D1ZN under Rule 133(5) of the Rules, and submit investigation report to the NAA for determination whether the Respondent was liable to pass on the benefit of ITC in respect of all the other Projects/Blocks to the buyers, or not, as per the provisions of Section 171(1) of the CGST Act, 2017.
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