Case Law Details
Director General of Anti-Profiteering vs New World Realty LLP (CCI)
The DGAP launched an investigation based on the National Anti-Profiteering Authority (NAA)’s direction to examine potential profiteering by New World Realty LLP in projects beyond the Tinsel Town project. The DGAP’s report noted that the NAA had already determined the amount of ITC not passed on to recipients during a specific period. The investigation covered a span of five years, and it emerged that New World Realty LLP had only undertaken the Tinsel Town project during this period, which the DGAP confirmed by examining the Maharashtra Real Estate Regulatory Authority (RERA) records. The DGAP’s findings concluded that the anti-profiteering provisions of Section 171 of the CGST Act, 2017 were not applicable to this case.
The CCI, after considering the DGAP’s report and evidence, established that New World Realty LLP was only engaged in the Tinsel Town project, and the previously determined profiteered amount was already related to this project. As such, the Commission decided the case did not fall under the ambit of Anti-Profiteering provisions of Section 171 of the CGST Act, 2017, and dropped the proceedings against New World Realty LLP. The decision marks a significant point of interest for companies operating under the CGST Rules.
FULL TEXT OF THE ORDER OF COMPETITION COMMISSION OF INDIA
1. The present Report dated 20.01.2023 has been received by the Competition Commission of India (hereinafter referred to as the “Commission”) from the Director General of Anti-Profiteering (herein after referred to as the “DGAP”) after a detailed investigation under Rule 133(5) of the Central Goods & Service Tax (CGST) Rules, 2017 (herein after referred to as the “Rules”). The brief facts of the case are that the erstwhile National Anti-Profiteering Authority (herein after referred to as the “NAA”) in the case of M/s New World Realty LLP (herein after referred to as the “Respondent”), vide Para-13 of the Order. No. 59/2022 dated 22.08.2022 had directed the DGAP to investigate profiteering in relation to projects other than the project “Tinsel Town” being constructed by the Respondent under single GST Registration No. i.e. 27AAHFN9995N1Z3 under Rule 133(5) of the CGST Rules, 2017 and submit investigation report to the NAA for determination whether the Respondent was liable to pass on the benefit of ITC in respect all the other Projects/Blocks to the buyers, or not, as per the provisions of Section 171(1) of the CGST Act, 2017.
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