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2022 (8) TMI 529 - NATIONAL ANTI-PROFITEERING AUTHORITYProfiteering - construction service - allegation is that the Respondent had not passed on the benefit of ITC by way of commensurate reduction in the price - Contravention of Section 171 of the CGST Act, 2017 - interest - penalty - HELD THAT:- The Authority finds that the benefit of additional Input tax Credit of 5.86% of the turnover has accrued to the Respondent for the project “Sanghvi Solitaire”. This benefit was required to be passed on to the recipients. Thus. Section 171 of the CGST, 2017 has been contravened by the Respondent, inasmuch as the additional benefit of ITC @5.86% of the base price received by the Respondent during the period 01.07.2017 to 31.03.2019, was required to be passed on by the Respondent to 17 recipients including the Applicant no. These recipients are identifiable as per the documents provided by the Respondent, giving the names and addresses along with Unit no. allotted to such recipients - the Authority determines that the Respondent has profiteered an amount of Rs. 54,14,439/-. Interest - HELD THAT:- The 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/customers commensurate with the benefit of ITC received by him. The details of the recipients and benefit which is required to be passed on to each recipient/ homebuyer (including Applicant No. 1) along with the details of the unit are contained in the Annexure ‘A’ to this Order. The Authority directs that the profiteered amount as determined shall be passed on/returned by the Respondent to the recipients of supply along with interest @18%., as prescribed under Rule 133(3)(b) of the CGST Rules, 2017, from the date such amount was profiteered by the Respondent up till the date such amount is passed on/retuned to the respective recipient of supply (if not already passed on) within a period of three Months from the date of this Order failing which it shall he recovered as per the provisions of the CGST Act, 2017. Penalty - HELD THAT:- The Authority holds that the Respondent has committed an offence by violating the provisions of Section 171 (1) during the period from 01.07.2017 to 31.03.2019, and therefore, he is liable for imposition of penalty under the provisions of Section 171 (3A) of the above Act. However, persual of the provisions or the said Section 171 (3A) shows that it has been inserted in the CGST Act, 2017 w.e.f. 01.01.2020 vide Section 112 of the Finance Act, 2019 and it was not in operation during the period from 01.07.2017 to 31.03.2019 when the Respondent had committed the above violation. the said penalty under Section 171 (34) cannot he imposed on the Respondent retrospectively. 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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