Case Law Details
Syed Ali Hussaini Vs Vasavi and GP Infra LLP (Competition Commission of India)
Introduction: The Competition Commission of India (CCI) recently issued an order in the case of Syed Ali Hussaini vs Vasavi and GP Infra LLP. The order directs the Director General of Anti-Profiteering (DGAP) to investigate the claim made by ‘GP Infra’ regarding the passing of Input Tax Credit (ITC) benefit. The complaint alleges profiteering by the respondent in the sale of flats, specifically in the project “Vasavi GP Trends.”
Detailed Analysis: The report from DGAP reveals that the investigation period spans from July 1, 2017, to May 31, 2022. The Respondent was accused of not passing on the full benefit of ITC to homebuyers, leading to an increase in profits. The analysis includes a comparison of ITC percentages, turnover, and ratios during the pre-GST and post-GST periods.
Table-A showcases the Respondent’s eligibility for ITC before and after the GST introduction. It indicates a significant increase in ITC during the post-GST period, leading to a higher benefit. The DGAP’s findings include a detailed breakdown of CENVAT, input tax credit, turnover, and relevant ITC ratios.
Table-B further dissects the data, revealing an alleged profiteering amount of Rs. 14,81,25,853, inclusive of GST, during the post-GST period. The Respondent’s claim of passing on ITC benefits to homebuyers is scrutinized, with discrepancies in the number of buyers confirming or denying the receipt of such benefits.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
