Case Law Details
Karunakar Singh Vs Prasu Infrabuild Pvt. Ltd (NAA)
1. The present Report dated 29.10.2021 has been received by National Anti‑ Profiteering Authority (NAA or the Authority) from the Applicant No. 12 i.e. the DGAP after detailed investigation under Rule 129(6) of the Central Goods & Service Tax (CGST) Rules, 2017. The brief facts of the present case are that the Standing Committee on Anti-profiteering, received an application under Rule 128 of the CGST Rules, 2017 filed by the Applicant No. 1 alleging profiteering in respect of construction service supplied by the Respondent. The Applicant No. 1 has submitted that he had booked Unit No. 2117 in the Respondent’s project “SKA Green Arch”, Greater Noida (West) under Prime Minister Awas Yojana (PMAY) and alleged that the Respondent had charged GST @12%. In his application, the Applicant No. 1 also submitted that MRP of the flat had increased and the Respondent had not passed on the benefit of ITC to him by way of commensurate reduction in the price on introduction of GST w.e.f. 01.07.2017, in terms of Section 171 of the CGST Act, 2017.
2. The DGAP in his Report dated 29.10.2021, inter-alia stated that:‑
i. The said application was examined by the Standing Committee on Anti-profiteering, in its meeting, the minutes of which were received in the DGAP’s office on 15.10.2020, whereby it was decided to forward the same to the DGAP to conduct a detailed investigation in the matter. Accordingly, investigation was initiated to collect evidence necessary to determine whether the benefit of ITC had been passed on by the Respondent to his customers in respect of construction service supplied by the Respondent.
ii. On receipt of the reference from the Standing Committee on Anti-profiteering, a notice under Rule 129 of the Rules was issued by the DGAP on 06.11.2020, calling upon the Respondent to reply as to whether he admitted that the benefit of ITC had not been passed on to his customers by way of commensurate reduction in price and if so, to suo moto determine the quantum there of and indicate the same in his reply to the notice as well as furnish all supporting documents. Vide the said notice, the Respondent was also given an opportunity to inspect the non-confidential evidences/information furnished by the Applicant No. 1, during the period 25.11.2020 to 26.11.2020. The Respondent availed of the said opportunity and inspected the said documents on 07.01.2021.
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