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2020 (7) TMI 442 - NATIONAL ANTI-PROFITEERING AUTHORITYProfiteering - purchase of a flat - allegation that the benefit of reduction in the rate of tax not passed on - contravention of section 171 of CGST Act - imposition of penalty - HELD THAT:- The amount of benefit of ITC which was required to be passed on by the Respondent or the profiteered amount is determined as ₹ 1,70,28,230/- including the GST @12% on the basic profiteered amount of Rs. as has been mentioned in Annexure-25 of the Report dated 10.12.2019, in terms of Rule 133 (1) of the above Rules. This amount includes an amount of ₹ 488/- including GST @12% on the base amount of ₹ 435/- which has been profiteered by the Respondent from the Applicant No. 1. The Respondent has also realized an additional amount of ₹ 1,70,27,742/- which includes both the profiteered amount @5.38% of the taxable amount (base price) and GST on the said profiteered amount from the other 176 flat buyers who were not party in the present proceedings. It is also clear from the facts of the case that the Respondent has been directed to pass on the benefit of ITC till 30.04.2019 as data only till April, 2019 was available. Any benefit of ITC which may become available to the Respondent post 30.04.2019 would a so be passed on by the Respondent to the eligible buyers, The State Commissioner GST shall ensure that the above benefit is passed on to the eligible buyers and a report is submitted to this Authority through the DGAP within a period of 4 months from the date of this order. Penalty - HELD THAT:- It is also evident that the Respondent has denied the benefit of ITC to the buyers of the flats being constructed by him in his Project ‘Sky Terraces’ in contravention of the provisions of Section 171 (1) of the CGST Act. 2017. Therefore, he is apparently liable for imposition of penalty as per the provisions of Section 171 (3A) read with Rule 133 (3) (d) of the CGST Act, 2017. Therefore, notice be issued to him to explain why penalty should not be imposed on him.
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