Director General of Anti-Profiteering Vs Shree Infra (NAA)
We find that the Respondent had three Phases viz. Phase-I, Phase—II and Phase-III comprising building Nos. A-J-K-L-M, B1-B2-H1-H2-I and C102-D1-D2-E1-E2-F1-F2 respectively in “River View Heights” Out of these three Phases, Phase-I was completed by August 2014, which is well before the implementation of GST and Phase-III had not been started uptil 27.08.2020. Further, in respect of Phase-II, it is on record that, it has already been investigated vide Order No. 51/2019 dated 21.10.2019 passed by this Authority under Rule 133 of the CGST Rules 2017 read with section 171 of the CGST Act 2017, vide which profiteered amount of Rs. 2,13,468/-(including GST @12%) for the period 01.07.2017 to 31.10.2018, has been confirmed in relation to 26 home buyers.
We find no grounds, in the present case, to differ from the Report of the DGAP. Since the said Phase-I was not in existence in the GST period and the said Phase-III was yet to be started/registered as on 27.08.2020 hence, the Anti-Profiteering provisions under Section 171 of the CGST Act 2017 are not applicable on the said Phase-I and Phase-III of “River View Heights” of the Respondent.
Given our above findings, we conclude that the instant case does not fall under the ambit of the Anti-Profiteering provisions of Section 171 of the CGST Act, 2017. Accordingly, the present proceedings ordered vide para 18 of the Order No. 51/2019 dated 21.10.2019 stand concluded and the Report dated 27.08.2020 by the DGAP is accepted.
FULL TEXT OF ORDER OF NATIONAL ANTI-PROFITEERING AUTHORITY
The present Report dated 27.08.2020, was received on 31.08.2020 from the Director General of Anti-Profiteering (DGAP) after a detailed investigation under Rule 133(5) of the Central Goods & Service Tax (CGST) Rules, 2017. The brief facts of the present case are that the DGAP, upon receipt of a reference from the Standing Committee on Anti-Profiteering, wherein it was alleged by Sh. Vasantbhai Bhikabhai Patel, 202, Shree Shakti Tower, Near Eiffiel Tower, L H Road, Surat- 395006 that the Respondent had not passed on the benefit of Input Tax Credit (ITC) by way of commensurate reduction in price in respect of purchase of two flats i.e. H/1/702 and H/1/802 in his Project “River View Heights”, had investigated the matter in detail and submitted his Report dated 24.04.2019 to this Authority on 24.04.2019. Vide his Report dated 24.04.2019, the DGAP had informed that the Respondent had additionally benefited with Input tax Credit (ITC) @ 0.28% i.e. amounting to Rs. 2,13,468/- (including GST) during the period from 01.04.2017 to 31.10.2018 which was to be passed by the Respondent to the eligible home buyers of the aforesaid project in terms of the provisions enshrined under section 171 of the Central Goods and Services Tax (CGST) Act 2017. This Authority had carefully examined the DGAP’s Report dated 24.04.2019, submissions of the Respondent and all the documents placed on record and passed a detailed and reasoned order vide Order No. 51/2019 dated 21.10.2019 as per Rule 133 (1) of the CGST Rules 2017 confirming the profiteered amount of Rs. 2,13,468/- as computed by the DGAP for Phase-II of the Project “River View Heights” of the Respondent and directed the latter to pass on the same alongwith interest @18% to the eligible home buyers of the said Project and to reduce the price to be realized from the buyers of the flats commensurate with benefit of ITC received by them.
2. During careful consideration of the aforesaid Report dated 24.04.2019 and submissions of the Respondent, this Authority had reason to believe that the investigation has been restricted to Phase-II of the Respondent’s Project “River View Height” ignoring other phases of the said Project. Hence this Authority had directed the DGAP to investigate the issue of passing the benefit of additional ITC in respect of the whole Project and submit Report under Rule 133 (5) of the CGST Rules, 2017.
3. In terms of the aforesaid Order dated 21.10.2019, the DGAP has investigated the matter and submitted his Report dated 27.08.2020 wherein;
(i) the DGAP has informed that on receipt of the aforesaid Order issued by this Authority, a Notice for Initiation of Investigation under Rule 129 of the Rules was issued by him on 30.10.2019, calling upon the Respondent to reply as to whether he admitted that the benefit of ITC had not been passed on to the consumers by way of commensurate reduction in price.
(ii) the DGAP has also informed that the period covered by the current investigation is from 01.07.2017 to 30.09.2019.
(iii) the DGAP has stated that the time limit to complete the investigation was 19.06.2020, however, vide Notification No. 35/2020-Central Tax dated 03.04.2020 where, any time limit for completion/furnishing of any report, had been specified in, or prescribed or notified under the CGST Act, 2017 which fall during the period from the 20th day of March, 2020 to the 29th day of June, 2020, and where completion or compliance of such action had not been made within such time, then, the time limit for completion or compliance of such action, should be extended upto the 30.06.2020.
Further, vide Notification No. 55/2020-Central Tax dated 27.06.2020, the time limit for completion of investigation was further extended as under, where,
(a) the words, figures and letters “29th day of June, 2020″, the words, figures and letters “30th day of August, 2020″ shall be substituted.
(b) the words, figures and letters “30th day of June, 2020″, the words, figures and letters “31th day of August, 2020″ shall be substituted.
(iv) the DGAP has further stated that this Authority vide its order dated 30.06.2020 has allowed further extension of 3 months. Accordingly, the extended time limit to complete the investigation was 30.11.2020.
(v) the DGAP has submitted that in response to his notice dated 30.10.2019, the Respondent furnished his reply vide letters and e-mails dated 11.03.2020 and 07.08.2020. The detailed submissions of the Respondent are quoted as follows: –
(a) the Respondent’s firm “Shree Infra” was a builder and was engaged in the business of developing and construction activity.
(b) Phase wise details of the Project” River view Heights” are as per Table-A below: –
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