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Case Law Details

Case Name : Rahul Gautam Vs Himalya Real Estate Pvt. Ltd. (NAA)
Appeal Number : Case No. 40/2022
Date of Judgement/Order : 18/07/2022
Related Assessment Year :
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Rahul Gautam Vs Himalya Real Estate Pvt. Ltd. (NAA)

The Authority finds that, the DGAP has given a categorical report based on its verification that, the benefit of ITC has been passed on by the Respondent to all 189 homebuyers/customers who have booked their units on or after 1.07.2017 by way of giving deduction in the demand note itselfas per the example reproduced above. The findings at para 10 and 11 of the DGAP’s Report dated 30.11.2020 are reproduced at paragraphs 5(i), 5(j) and 5(k) above and the DGAP states that it has scrutinized the demand notes and allotment letters issued to these 189 homebuyers/customers by the Respondent.

Hence, the Authority determines the profiteered amount for the period from 01.07.2017 to 31.12.2018, in the instant case, as 2,26,76,700/- with  respect to the other 500 homebuyers/customers i.e. those who have booked their units prior to 1.07.2017 (excluding those from whom no demand was raised/ consideration received from 1.07.2017 to 31.12.2018) for the Project “Himalaya Pride”.

The Authority finds that, in order to verify the claim of the Respondent that the benefit of ITC had already been passed on to 500 homebuyers/customers who had booked Units in the pre-GST period, the DGAP has sent e-mails to 300 homebuyers/customers picked up randomly to confirm whether the Respondent has passed on the benefit of ITC to them or not. Out of these 300 homebuyers/customers, only 51 confirmed that they had received the benefit of ITC from the Respondent. Hence, we hold that, with respect to such category of homebuyers/customers i.e. those who have booked their units prior to 01.07.2017 (excluding those from whom no demand was raised/ consideration received from 1.07.2017 to 31.12.2018), the DGAP’s verification is inconclusive and it cannot be concluded that all such homebuyers/customers have got the benefit of ITC that was required to be passed on by the Respondent.

In view of the above discussions, the Authority finds that the Respondent has profiteered by an amount of Rs. 2,26,76,700/- during the period of investigation i.e. 01.07.2017 to 31.12.2018. The above amount that has been profiteered by the Respondent from his home buyers shall be refunded by him, along with interest @18% thereon, from the date when the above amount was profiteered by him till the date of such payment, in line with the provisions of Rule 133 (3) (b) of the GCST Rules 2017.

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