CCI directs DGAP to verify claim of Ireo Grace Realtech of passing ITC benefit 

Sandeep Bansal & Ors. vs. Ireo Grace Realtech Pvt. Ltd. (Competition Commission of India)

One of the contention of the Respondent is that he has passed on benefit of ITC amounting to Rs. 1,94,67,655/- to his customers/home-buyers in compliance of Section 171 of the CGST Act, 2017 by way of reduction in price via issuance of the Credit Note and the same has been duly intimated to the customers vide e-mails. He has also submitted Chartered Accountant’s (CA) Certificate stating thereby that Credit Notes have been issued to the customers/home-buyers by the Respondent for passing the benefit of ITC in compliance of Section 171 of the CGST Act, 2017. With respect to the above submissions of the Respondent. the DGAP has submitted that the claim of the Respondent that he has passed on benefit of ITC amounting to Rs. 1,94,67,655/- to his customers is not correct as he has provided the documentary evidence on sample basis and hence, the claim of the Respondent cannot be verified unless the complete documentary evidence along with e-mail IDs of all the customers is provided. With respect to the above contention of the Respondent and without going into the merits of the case, the Commission observes that the claim of the Respondent regarding passing on the benefit of additional ITC needs to be verified. The Respondent is directed to provide all the documentary evidence i.e. “Names of the home-buyers, their E-mail ids/Mobile Nos./Addresses, Amount of ITC benefit passed on to each home-buyer, Copies of Tax invoice, Credit Notes and Cheques issued to each home-buyer, Copies of Bank Statements highlighting the amount of ITC benefit passed on to the home-buyers and Acknowledgement Receipts from all the home-buyers stating that they have received the additional benefit of ITC” to the DGAP to prove his above claim duly certified by the Authorised person of the Respondent.

The claim of the Respondent regarding passing on the benefit of ITC to the customers/home-buyers shall be verified by the DGAP by contacting the customers/home buyers by seeking their replies regarding receipt of benefit of ITC. Hence, the Commission under Rule 133(4) of the CGST Rules, 2017 directs the DGAP to further investigate the claim of the Respondent regarding passing on the benefit of ITC and thus, recalculate the profiteered amount in respect of the project The Corridors”, if required.

The Respondent is also directed to extend all necessary assistance to the DGAP and furnish him with necessary documents or information as required during the course of the investigation.