Case Law Details
Director General of Anti-Profiteering Vs SJP Hotel & Resorts Pvt. Ltd (Competition Commission of India)
Competition Commission of India (CCI) has decided to drop the anti-profiteering proceedings against SJP Hotel & Resorts Pvt. Ltd., a company involved in the real estate business. After conducting an investigation based on a direction from the National Anti-profiteering Authority (NAA), the CCI found that the company is executing only one project, “Migsun Wynn,” which was already subject to profiteering determination by the NAA.
Analysis: The CCI’s decision comes after the NAA’s order dated 26.07.2022, in which they confirmed a profiteered amount of Rs. 6,87,58,685/- in the “Migsun Wynn” project executed by SJP Hotel & Resorts Pvt. Ltd. Following the NAA’s order, the DGAP was directed under Rule 133(5) of the CGST Rules, 2017, to investigate whether the company had profiteered in any other projects executed under the same GST registration number.
In response to the DGAP’s notice, the company stated that they had only one project under GST Registration Number 09AALCS8695P1ZZ, which was “Migsun Wynn,” and no other projects. The DGAP verified this claim by checking the details of projects executed by the company registered with UP Real Estate Regulatory Authority (RERA) from the UPRERA website. The verification confirmed that SJP Hotel & Resorts Pvt. Ltd. had only two projects, “Migsun Wynn” and “Migsun Janpath,” under different GSTINs.
Conclusion: Based on the findings of the DGAP and the verification from the UP RERA website, the CCI concluded that SJP Hotel & Resorts Pvt. Ltd. is executing only one project, “Migsun Wynn,” and no other projects. As the company has already been subject to profiteering determination for the “Migsun Wynn” project by the NAA, the provisions of Section 171 of the CGST Act, 2017, are not applicable to other projects. Therefore, the anti-profiteering proceedings against the company were dropped.
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