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Case Law Details

Case Name : Shivkumar Tattimani Vs Axis Concept Construction Pvt. Ltd (NAA)
Appeal Number : Case No. 45/2022
Date of Judgement/Order : 26/07/2022
Related Assessment Year :
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Shivkumar Tattimani Vs Axis Concept Construction Pvt. Ltd (NAA)

ITC as a percentage of the turnover that was available to the Respondent during the pre-GST period (April-2016 to June-2017) was 1.17% and during the post-GST period (July-2017 to April-2020), it was 13.52% for the project “Axis Vedam”. This confirms that, post-GST. the Respondent has been benefited from additional ITC to the tune of 12.36% [13.52% (-) 1.17%] of his turnover for the said project and the same was required to be passed on to the customers/flat buyers/recipients. The DGAP has calculated the amount of ITC benefit to be passed on to the customers/flat buyers/recipients as Rs 40,94,480/-for the project Axis Vedam”. the details of which are mentioned in Table- B above. This Authority finds that the project “Axis Vedam” comprises of 46 units in all and out of the above. 21 units belong to land owner which were handed over  to him after obtaining the Occupancy Certificate for possession and in respect of rest 4 units of the Respondent’s share of 25 units. 2 units were sold post OC and in respect of other 2 units, there were no payments receive in post GST period. Therefore. the profiteering amount of Rs. 40.94,480/- is with respect to 21 customers/flat buyers/recipients amongst all the customers as on 30.04.2020 in the project “Axis Vedam”. The list of 21 customers/flat buyers/recipients has been attached as Annexure – ‘A’ with this Order, containing the details of the amount of benefit of ITC to be passed on in respect of the project Axis Vedam” of the Respondent.

In view of the above discussions, the Authority finds that the Respondent has profiteered by an amount of Rs 40.94.480/- for the Project “Axis Vedam” during the period of investigation i.e. 01.07.2017 to 30.04.2020. The above amount that has been profiteered by the Respondent from his customers/flat buyers/recipients in the above said Project shall be refunded by him, along with interest @18% thereon, from the date when the above amount was profiteered by him till the date of such payment, in accordance with the provisions of Rule 133 (3) (b) of the CGST Rules. 2017.

The Authority finds no reason to differ from the above-detailed computation of profiteering in the DGAP’s Report or the methodology adopted and hence, the Authority determines the profiteered amount for the period from 01.07.2017 to 30 04 2020. in the instant case, as Rs. 40.94.480/- for the Project “Axis Vedam”. This Authority under Rule 133 (3) (a) of the CGST Rules. 2017 orders that the Respondent shall reduce the prices to be realized from the customers/flat buyers/recipients commensurate with the benefit of ITC received by him as has been detailed above.

The Respondent is also liable to pay interest as applicable on the entire amount profiteered. i e Rs. 40.94.480/- for the project “Axis Vedam” Hence the Respondent is directed to also pass on interest @18% to the customers/ flat buyers/ recipients on the entire amount profiteered, starting from the date from which the above amount was profiteered till the date of passing on/ payment. as per the provisions of Rule 133 (3) (b) of the CGST Rules, 2017.

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