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Case Law Details

Case Name : Sh. Arnav Datta Vs Prescon Realtors and Infrastructure Pvt. Ltd. (NAA)
Appeal Number : Case No. 42/2022
Date of Judgement/Order : 22/07/2022
Related Assessment Year :
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Sh. Arnav Datta Vs Prescon Realtors and Infrastructure Pvt. Ltd. (NAA)

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 pre-GST period (April, 2016 to June, 2017) was 1.43% and during the post-GST period (July, 2017 to September, 2019), it was 5.69% in Project ‘Silver Oak’. This clearly confirms that post-GST, the Respondent has benefited from additional input tax credit to the tune of 4.26% [5.69% (-) 1.43%] of the turnover and the same was 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 all the flat buyers as Rs. 3,45,28,279/- for the project ‘Silver Oak’ which was availed by the Respondent the details of which are mentioned in Table- C supra.

The Authority finds no reason to differ from the above-detailed computation of profiteering in the DGAP’s Report or the methodology adopted and hence, this Authority determines the profiteered amount for the period from 01.07.2017 to 30.09.2019, in the instant case, as Rs. 3,45,28,279/- for the project ‘Silver Oak’. This Authority under Rule 133 (3) (a) of the CGST Rules, 2017 orders that the Respondent shall reduce the prices to be realized from the buyers of the flats/shops commensurate with the benefit of ITC received by him as has been detailed above.

The Respondent is also liable to pay interest as applicable on the entire amount profiteered, i.e. Rs. 3,45,28,279/- for the project ‘Silver Oak’. 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.

FULL TEXT OF ORDER OF NATIONAL ANTI-PROFITEERING AUTHORITY

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