Case Law Details
Vinutha Prahlad Vs MJR Builders Pvt. Ltd. (NAA)
Authority finds that in the present ease, the Respondent has raised invoice to his home buyers which included the consolidated demand of the land and the construction services. No separate demand for the land in the invoice has been issued by the Respondent to his home buyers. The Authority finds that. if the Respondent would have issued separate invoice demanding the cost of land, the amount of GST charged would have been 18% and not 12%. The Authority finds that, had the Respondent excluded the land value from the demand raised to his buyers, the value of land would have been excluded from the perview of profiteering. Therefore, the Authority finds that the facts of the cases relied upon by the Respondent are different from the present case. Hence, the Authority finds that this contention of the Respondent regarding exclusion of land value being untenable cannot be accepted.
Hence, as per our findings above, the Authority rinds no reason to differ from the above detailed computation of profiteering in the DGAP’s Report or the methodology adopted. Hence, the Authority holds that, the EEC as a percentage of the turnover that was available to the Respondent during the pre-GST period (April-2016 to June-2017) was 3.71% and during the post-GST period (July-2017 to September-2019), it was 8.76%. This confirms that, post-GST, the Respondent has been benefited from additional ITC to the tune of 5.05% (8.76%-3.71%) of his turnover and the same was required to be passed on to the customers/flat buyers/recipients. The DGAP has calculated the amount of ITC benefit to be passed on to all the customers/ flat buyers/ recipients as Rs. 1,07.67.330/- for the project ‘MJR Clique Hydra’ which was availed by the Respondent the details of which are mentioned in Table- C supra.
For the masons mentioned above, the Authority determines the profiteered amount for the period from 01.07.2017 to 30.09.2019, in the instant case. as Rs. 1,07,67,330/- for the project ‘MJR Clique Hydra’. This profiteered amount of Rs. 1,07,67,330/- includes GST on the base profiteered amount of Rs. 96,13.687/-. The homebuyer/customer /recipient and unit No. wise break-up of this amount as given in Annexure-13 of the DGAP Report is accepted. This amount is inclusive of Rs. 1,03,453/- (including GST on the base amount of Rs. 92,369/-) which is the profiteered amount in respect of the Applicant No. 1. mentioned at serial No. 108 of Annexure-13 of the said Report.
For the reasons mentioned above, the Authority determines the profiteered amount for the period from 01.07.2017 to 30.09.2019. in the instant case, as Rs. 1,07.67,330/- for the project ‘MJR Clique Hydra’. This profiteered amount of Rs. 1.07.67.330/- includes GST on the base profiteered amount of Rs. 96,13,687/-.
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