Case Law Details
Kishore Arjandas Udasi Vs Wheelabrator Alloy Castings Pvt. Ltd. (NAA)
Facts of the Case:
The brief facts of the case are that vide his application dated 09.08.2018 filed before the Maharashtra State Screening Committee on Anti-profiteering under Rule 128 (2) of the CGST Rules, 2017, the Applicant No. 1 had alleged profiteering by the Respondent while he had purchased Flat No. T4-1004 OAK, in Tower-4 of the Respondent’s project “Runwal Forests”, near Mangatram Petrol Pump, LBS Marg, Kanjurmarg (W), Mumbai-400078.The above Applicant had also alleged that the Respondent had not passed on the benefit of Input Tax Credit (ITC) although he had charged GST @ 12% w.e.f. 01.07.2017 from him. The above Committee had examined the application and after its prima facie satisfaction that the Respondent had violated the provisions of Section 171 of the CGST Act, 2017, had sent the same with its recommendation for necessary action to the Standing Committee Anti-profiteering as per the provisions of Rule 128 (2) of the CGST Rules, 2017. This application was duly considered by the Standing Committee on Anti-profiteering in its meeting held on 13.12.2018 and was referred to the DGAP for conducting detailed investigation on the allegations levelled by the Applicant No. 1.
Held by NAA:
It is also evident from the submissions of the Respondent that he has claimed that there was error in the ITC amount of Rs. 52,54,64,132/-for the GST period till 31.12.2018, computed by the DGAP. he has also claimed that the opening balance of CENVAT credit has been double counted by the DGAP to arrive at the ITC credit in the post-GST regime and the correct amount of ITC as claimed by him in his Returns filed during the period from 01.07.2017 to 31.12.2018 was Rs. 24,29,56,019/-. While replying to his above claim the DGAP vide his Report dated 14.10.2019 has admitted that there was error in the ITC amount considered by him as the opening balance of the CENVAT credit has been counted twice due the reconciliation of CENVAT and turnover provided by the Respondent in his submissions filed before the DGAP on 31.01.2019 which were attached as Annexure-6 with his Report dated 26.06.2019. He has also submitted that the Respondent has also furnished corrected figures of turnover for his live home-buyers for the period from 01.07.2017 to 31.12.2018 and their reconciliation with the home-buyers data with the respective Returns He has further submitted that the Respondent has claimed that the corrected figures of turnover have been accepted by the GST Department after audit and hence they should be accepted by the DGAP. The DGAP has therefore, stated that in view of both the above claims made by the Respondent the computation of the profiteered amount and its distribution was required to be reconciled with the home-buyer’s data furnished by the Respondent now. Accordingly, as per the provisions of Rule 133 (4) of the CGST Rules, 2017 the DGAP is directed to reinvestigate the above issues and submit his Report accordingly.
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