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Case Law Details

Case Name : Yogesh Sharma Vs Total Environment Habitat Pvt. Ltd. (NAA)
Appeal Number : Case No. 11/2022
Date of Judgement/Order : 12/05/2022
Related Assessment Year :
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Yogesh Sharma Vs Total Environment Habitat Pvt. Ltd. (NAA)

The Authority finds that, the ITC, as a percentage of the turnover, that was available to the Respondent during the pre-GST period (April-2016 to June-2017) was 1.02%, whereas, during the post-GST period (July-2017 to April, 2020), it was 1.84%. This confirms that in the post-GST period, the Respondent has been benefited from additional ITC to the tune of 0.82% (1.84%-1.02%) of his turnover and the same is required to be passed on by him to the recipients of supply, including the Applicant No. 1. The Authority finds that the computation of the amount of ITC benefit to be passed on by the Respondent to the eligible recipients works out to Rs.3,87,94,493/-. The DGAP has calculated the amount of ITC benefit to be passed on to all the eligible recipients as Rs.3,87,94,493/- on the basis of the information supplied by the Respondent and hence the profiteered amount computed by the DGAP is hereby accepted as correct.

In view of the discussions above, the Authority finds that the Respondent has profiteered by an amount of Rs.3,87,94.493/-during the period of investigation i.e. 01.07.2017 to 30.04.2020 and determined the said amount under Rule 133(1) of the CGST Rules, 2017, the benefit of which has not been passed on to the recipients.

 This Authority under Rule 133 (3) (a) of the CGST Rules. 2017 orders that the Respondent shall reduce the prices to be realized from the buyers of the flats commensurate with the benefit of ITC received by him, as has been detailed above.

We order that, the said amount of Rs.3,87,94,493/- (including 12% GST) that has been profiteered by the Respondent from his home buyers, including Applicant No. 1, 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 accordance with the provisions of Rule 133 (3) (b) of the GCST Rules 2017 within a period of three months of from the date receipt of this order. The amounts to be refunded to each individual homebuyer is as per Annexure ‘A’ to this Order. Such amount shall be amount shall be refunded with appropriate interest @18% as ordered above.

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July 2024