Case Law Details
Saurabh Kumar Vs Pareena Infrastructure Pvt. Ltd. (NAA)
Applicant alleged that the Respondent had not passed on the benefit or Input Tax Credit (ITC) to him by way of commensurate reduction in the price of flat in respect of purchase of flat in project “Laxmi Apartment” Sector-99A, Dwarka Expressway, Gurugram, Haryana.
It is clear from plain reading of Section 171 (1) that it deals with two situations. One relating to the passing on the benefit of reduction in the rate of tax and the second pertaining to the passing on the benefit of the ITC. On the issue of reduction in the tax rate. it is apparent from the DGAP’s Report that there has been no reduction in the rate of tax in the post GST period: hence the only issue to he examined is as to whether there was any net benefit of ITC with the introduction of GST. On this issue it has been revealed from the DGAP’s Report that the ITC as a percentage of the turnover that was available to the respondent during the per-GST period (April-2016 to June 2017) was 1.61% and during the post-GST period (July-2017 to October-2020), it was 9.88% for the project “Laxmi Apartments”, This confirms that post-GST. the Respondent bus been benefited from additional ITC to the tune of 8.27% [9.88% (-) 1.61%] of his turnover for the said project and the same %vas 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 the customers/flat buyers/recipients as Rs. 633,70,091/- (which includes an amount of Rs. 57.557/- in relation to Applicant no. 1) for the project “Laxmi Apartments”. the details of which are mentioned in Table- B above.
Hence, the Authority finds nu reason to differ from the above detailed computation of profiteered amount by the DGAP or the methodology adopted by it. The Authority finds that Respondent has profiteered an amount of Rs. 6,33,70,091/- (Rupees Six Crore Thirty three Laes Seventy Thousand Ninety one only) during the period under present investigation. This includes an amount of Rs. 57,577/- in relation to Applicant no. 1, Therefore given the above facts. the Authority under Rule I 33(3)(a) of the COST Rules orders that the Respondent shall reduce the price to be realized from the customers/flat buyers/recipients commensurate with the benefit of additional ITC received by him.
The Respondent is also liable to pay interest as applicable on the entire amount profiteered. i.e. Rs. 6,33,70,091/- for the project “laxmi Apartments”. 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 which the above profited, starting from the date Nola which the above amount was profiteered till the date of passing on/ payment. as par the provisions of Rule 133 (3) (h) of the CGST Rules, 2017.
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