Sparsh Chowdhary Vs Pearlite Real Properties Private Limited (Competition Commission of India)
Introduction: The case between Sparsh Chowdhary and Pearlite Real Properties Private Limited, as presented before the Competition Commission of India, revolves around the anti-profiteering provisions of Section 171(1) of CGST Act, 2017 and its applicability to the “Godrej Elements” project.
Background and Allegations: On 28.03.2022, a report was submitted to the erstwhile National Anti-profiteering Authority (NAA) by the Director General of Anti-Profiteering (DGAP). Sparsh Chowdhary, the applicant, alleged that Pearlite Real Properties did not extend the Input Tax Credit (ITC) benefit to him as mandated by the CGST Act, specifically for the “Godrej Elements” project.
Key Findings from the DGAP Investigation
1. Project Timeline: The project “Godrej Elements” was initiated post-GST in June 2018, making the anti-profiteering provisions arguably irrelevant.
2. Evidence Produced: The Respondent showcased documents like the Commencement Certificate, RERA Certificate, and initial booking details for the project, all indicating a post-GST initiation.
3. Charges and Taxation: All homebuyers had their units booked post-GST, with the project charging GST at an effective rate of 12%.
4. Comparative Analysis Absence: The DGAP concluded that, since there were no pre-GST sales or allotments for comparison, there was no potential profiteering.
Erstwhile NAA’s Consideration
Despite multiple opportunities given to Sparsh Chowdhary to file a reply against the DGAP’s report, there was no response or presence from his side during hearings.
Competition Commission of India’s Verdict
