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2022 (7) TMI 1441 - NATIONAL ANTI-PROFITEERING AUTHORITYProfiteering - purchase of Flat - benefit of reduction in the rate of tax or ITC on the supply of construction service by the Respondent No. 1 & 2, on implementation of GST w.e.f.01.07.2017 - such benefit was passed on by the Respondent No. 1 & 2 to the recipients or not - contravention of section 171 of CGST Act - HELD THAT:- It is established from the perusal of the facts that the Respondent No. 1 has realized an additional amount of Rs. 7,94,569/- from Applicant no. 1, Rs. 29,45,27,905/- from 850 home buyers other than Applicant No. 1 and Rs. 1,23,35,442/- from the Respondent No. 2 during period from 01.07.2017 to 30.09.2019. The details of eligible homebuyers/recipients to whom supply has been made by Respondent no. 1 in the impugned Project and from whom additional amount on account of benefit of ITC had been realized by the Respondent no. 1 during period from 01.07.2017 to 30.09.2019 along with details of such additional amount is given in Annexure-‘A’ to this Order. All the home buyers/recipients are identifiable as per the documents placed on record and therefore, the Respondent No. 1 is directed to pass on/return/refund the profiteered amount along with the interest @ 18% per annum (from the dates from which the said profiteered amount was collected by him from each of them till the date such amount is passed on/returned/refunded is made), if not already passed on/returned/refunded, within a period of 3 months from the date of passing of this Order as per the details mentioned in Annexure-‘A’. It is also found that the Respondent No. 2 was also required to pass on the benefit of ITC @ 10.51 % of the turnover, which is calculated to the tune of Rs. 1,23,35,442/- to 30 flat buyers other than the Applicant No.1 as he had received consideration only from 30 flat buyers/recipients out of 62. The details of eligible homebuyers/recipients to whom supply has been made by Respondent no. 2 in the impugned Project and from whom additional amount on account of benefit of ITC had been realized by the Respondent no. 2 during period from 01.07.2017 to 30.09.2019 along with details of such additional amount is given in Annexure-‘B’ to this Order. Thus, this Authority under Rule 133 (3) (a) of the CGST Rules, 2017 orders that the Respondents shall reduce the prices to be realized from the buyers v of the flats/recipients of the above Project commensurate with the benefit of ITC received by him. The Authority has a reason to believe that since the Respondents have been found to have contravened the provisions of Section 171 of the CGST Act 2017 in respect of the subject project “Crescent Bay” and hence there is every possibility that similar contravention may has taken place with his other projects. This Authority in terms of Rule 133 (5)(a) of the CGST Rules 2017 also directs the DGAP to investigate profiteering in relation to other Projects executed by the Respondent No. 1 and 2, if any, under the provision of section 171 of the CGST Act 2017. In view of the prevailing Covid 19 pandemic and the Hon'ble Supreme Court Order in IN RE: COGNIZANCE FOR EXTENSION OF LIMITATION [2021 (3) TMI 497 - SC ORDER], IN RE : COGNIZANCE FOR EXTENSION OF LIMITATION [2020 (5) TMI 418 - SC ORDER] and IN RE COGNIZANCE FOR EXTENSION OF LIMITATION [2021 (5) TMI 564 - SC ORDER], this Order having been passed today falls within the limitation prescribed under Rule 133(1) of the CGST Rules, 2017. Application disposed off.
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