DGAP directed to further Verify ITC Benefit amount under Rule 133(4)

Sh. Bhanja Kishore Pradhan Vs HCBS Promoters & Developers Pvt. Ltd (National Anti-Profiteering Authority)

Facts of the Case:

The brief facts of the case are that the Applicant No. 1 filed application, dated 19.09.2018, before the National Anti-profiteering Authority under Rule 128 (1) of the CGST Rules, 2017. The said application was forwarded by the Authority to the Standing Committee on Anti-profiteering for further necessary action. The Applicant No. 1, vide his above application, alleged profiteering by the Respondent in respect of purchase of Flats in his “Sports Ville” project located in Sector-2 & 35, Sohna, Gurgaon. The above Applicant also alleged that the Respondent had not passed on the benefit of Input Tax Credit (ITC) availed by him by way of commensurate reduction in the price of the above flats. The aforesaid application was considered by the Standing Committee on Anti-profiteering, in its meeting held on 27^th December, 2018, wherein it was decided to forward the same to the DGAP to conduct detailed investigation in to the complaint according to Rule 129 (1) of the CGST Rules, 2017.

Held by NAA:

NAA observe that the DGAP, has reported that the Respondent had claimed to have already passed on benefit of Rs. 1,42,56,347/- to his home buyers during the period from 01.07.2017 to 31.08.2019. As evidence, he has submitted list of all his home buyers mentioning the amount of ITC benefit passed on to each of them, Customer-wise ledgers in respect of some of the home buyers which mention entries indicating “being GST input benefit transfer to customer” and has also submitted samp letters sent to his home buyers in support of his having passed on the benefit of ITC to them in terms of Section 171 of CGST Act. Further, perusal of Table-D’ of the DGAP Report dated 02.07.2019 suggests to us that an amount of Rs. 1,42,56,347/- is claimed to have been passed on by the Respondent to his home buyers on account of ITC benefit. However, it is also clear from Table-‘D’ of the above DGAP Report that claim of the Respondent of having passed on the benefit of Rs. 1,42,56_;347/-, has not been verified at any stage by the DGAP. Accordingly the DGAP is directed to further verify the amount of ITC benefit claimed to have been passed on to his home buyers by the Respondent as per the provisions of Rule 133 (4) of the above Rules and submit his Report clearly mentioning the verified amount of benefit passed on by the Respondent to his home buyers and the balance amount still to be passed on to each of the home buyers.

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