Case Law Details
Shruti Garg Vs Signature Builders Pvt. Ltd. (National Anti-Profiteering Authority)
The Respondent has also contended that the DGAP has calculated the profiteered amount as Rs. 1,40,41,916/- whereas he has passed on an amount of Rs. 1,29,29,849/- to the 998 home and 91 commercial shop buyers as benefit of ITC. He has also submitted letters addressed to the above Applicants claiming that he is “giving benefit under ITC u/s 171 of the applicable GST laW’ along with ledger accounts of the buyers in support of his claim. However, perusal of the ledger accounts of the buyers shows that there is no evidence to suggest that he has passed on the benefit of Rs. 1,29,29,849/- to the 998 home and 91 commercial shop buyers on account of ITC as there is no such entry in the ledger accounts of these buyers. A typical entry of Rs. 13,115/- made in the ledger account on 31.05.2018 of one MIs Ritika Chhabra, who has been allotted unit No. A-203 in the above project by the Respondent, reads as “Receipt Ref. CRS1/02174/18-19 (12,143.00+ Tax 972.00)” which shows that no where it has been mentioned that this amount has been transferred on account of ITC benefit. Perusal of the copies of the ledger accounts of the other house buyers to whom the Respondent has claimed to have passed on the benefit of ITC also shows that the same entry has been made in all such cases on 31.05.2018. By no stretch of imagination this entry can be construed to have been made on account of passing on of the benefit of ITC, therefore, the above amount cannot be taken to have been passed on account of the ITC benefit. Moreover, the DGAP in his Report dated 14.06.2019 has not verified the above claim of the Respondent. The Applicant No. 3 has specifically stated in his submissions that the Respondent has not passed on the ITC benefit to him. Hence, the above contention of the Respondent that he has passed on the full benefit of ITC is not correct and therefore, the same cannot be accepted.
Vide his submissions dated 09.12.2019 the Respondent has also supplied the details of the credit notes through which he has claimed to have passed on the benefit of ITC. However, the above credit notes have neither been verified by the DGAP nor any reliable and irrefutable evidence has been produced by the Respondent to establish the genuineness of these credit notes. Hence, the above credit notes cannot be relied upon on his mere assertion.
The Respondent has also claimed that 132 residential flats and 20 commercial shops were booked after coming in to force of the GST in respect of which the buyers were not entitled to get benefit of ITC. However, he has not submitted the details of the above buyers during his submissions. Hence, the above contention of the Respondent is untenable due to lack of evidence.
Therefore taking into account the 1.65% net benefit of additional ITC this Authority is in agreement with the DGAP’s calculation, as has been mentioned in Annexure-14 of his Report that the profiteered amount is Rs. 1,40,41,916/-. Thus, this Authority determines the profiteered amount as Rs. 1,40,41,916/- which includes GST @12% for the period w.e.f. 01.07.2017 to 31.12.2018.
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