DGAP Vs Pivotal Infrastructure Pvt. Ltd. (GSTAT)
The GST Appellate Tribunal heard the matter in virtual mode after considering submissions from the DGAP and the respondent’s representative. The DGAP report dated 20.12.2024 concluded that the respondent contravened Section 171 of the CGST Act, 2017. The DGAP determined a profiteered amount of ₹3,04,42,755, with GST at 12% amounting to ₹36,53,130, aggregating to ₹3,40,95,886 for the project “Royal Heritage,” Sector 70, Faridabad.
The report also acknowledged that the respondent had already passed on ₹91,45,350 to 1,104 home buyers. Table “C” in the report showed that after deducting this amount, the remaining profiteering worked out to ₹3,12,78,937. However, the concluding part of the report still mentioned the total profiteering as ₹3,40,95,886, which the Tribunal found prima facie erroneous in light of the admitted benefit already passed on.
The Tribunal noted that paragraph 26 of the report required ₹3,12,78,937 to be passed on to 1,104 eligible home buyers. Accordingly, the respondent was directed to pay ₹3,12,78,937 along with applicable interest to the eligible home buyers under Section 133(3)(B) of the CGST Act, 2017. On the respondent’s request, the Tribunal granted three months’ time to refund the amount, considering the large number of home buyers involved. The respondent was further directed to submit a compliance report to the jurisdictional GST Commissioner and the DGAP. The matter was disposed of with these directions.
