Case Law Details
Sunil Saraf Vs Paramount Propbuild Pvt Ltd. (NAA)
The brief facts of the present case was that a reference was received from the Standing Committee on Anti-Profiteering to the DGAP for conducting a detailed investigation in respect of an application filed by the Applicant No. 1 alleging profiteering by the Respondent in respect of purchase of a Unit/Flat No. 0-621 in Tower Oak in the Respondent’s project ‘Paramount Golfforeste’ situated at Plot No. BGH-A, Site-C (Housing Extn.), Opp. Sector Zeta, Surajpur, Greater Noida. The Applicant No. 1 has alleged that the Respondent had not passed on the benefit of ITC to him by way of commensurate reduction in price after the Implementation of GST w.e.f. 01.07.2017.
Authority finds that the Respondent has profiteered by an amount of Rs. 93,63,948/- during the period of investigation e. July-2017 to October-2020. Such amount profiteered by the Respondent from his customers/home buyers/recipients in the above project shall be refunded/returned/passed on by him, along with interest 018% thereon, from the date when the above amount was profiteered by him till the date of such refund/return/payment, In accordance with the provisions of Rule 133 (3) (b) of the GCST Rules 2017.
With respect to the benefit of ITC amounting to Rs. 9,26,233/- already passed on to the 87 home buyers by the Respondent, the report of the DGAP is not clear that whether the Respondent has refunded the above profiteered amount to the home buyers alongwlth interest @18% or not. Hence, the aspect whether the Respondent has paid the interest on the above profiteered amount of Rs. 9,26,233/- is required to be verified.
The Respondent is also liable to pay interest as applicable on the entire amount profiteered, i.e. Rs. 93,63,948/-. Hence the Respondent is directed to also pass on interest @18% to the customers/flat buyers/recipients on the entire amount profiteered, starting from the date from which the above amount was profiteered till the date of passing on/ payment, as per provisions of Rule 133 (3) (b) of the CGST Rules 2017.
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