Case Law Details
Honey Macker Vs Pivotal Infrastructure Pvt. Ltd. (Competition Commission of India)
In a recent development, the Competition Commission of India (CCI) has absolved Pivotal Infrastructure Pvt. Ltd. of accusations of profiteering in connection with its project ‘Devaan’. This decision comes following a thorough investigation and subsequent hearings regarding alleged violations of Section 171 of the Central Goods and Services Tax Act, 2017.
The investigation stemmed from a report submitted by the Director General of Anti-Profiteering (DGAP) on March 23, 2021, which was received by the National Anti-Profiteering Authority (NAA) on March 24, 2021. The report detailed a meticulous inquiry conducted under Rule 133(4) of the Central Goods & Service Tax (CGST) Rules, 2017.
Initially, the NAA, through its Order No. 35/2020 dated June 20, 2020, determined a profiteered amount of Rs. 4,83,04,691/- concerning both residential flats and commercial shops in the ‘Devaan’ project for the period spanning from July 1, 2017, to June 30, 2019. Furthermore, the NAA directed the DGAP to investigate the quantum of Input Tax Credit (ITC) benefits that Pivotal Infrastructure Pvt. Ltd. was obligated to pass on to home/shop buyers from July 1, 2019, until March 6, 2020, or until the Completion Certificate (C.C.) was obtained, whichever was earlier, given that the project was still under execution.
The subsequent report from the DGAP, which extended the investigation period until the date of issuance of the Completion Certificate, revealed that Pivotal Infrastructure Pvt. Ltd. had not benefited from additional input tax credit during the period from July 1, 2019, to March 6, 2020. The data submitted by the company indicated a decrease in the percentage of input tax credit to turnover compared to the pre-GST period, affirming that there was no profiteering through additional input tax credit.
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