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2020 (3) TMI 1406 - NAPA - GSTProfiteering - purchase of Duplex Row House - it is alleged that the Respondent had not passed on the benefit of ITC - benefit of transitional ITC - violation of section 171 of CGST Act - HELD THAT:- It is revealed that the Respondent is executing a project known as "Sahej Valley" at Dandipalli in Rourkela. It is also revealed that the Applicant No. 1 has purchased a Duplex Row House No. B3 in the above project and has alleged vide his application dated 09.08.2018 that the Respondent has not passed on the benefit of ITC to him. The above application was examined by the Odisha State Screening Committee on Anti-Profiteering under Rule 128 (2) of the CGST Rules, 2017 and after having prima-facie satisfied itself that the Respondent has violated the provisions of Section 171 (1) of the CGST Act, 2017 had forwarded it to the Standing Committee on Anti-Profiteering for further action. The Standing Committee had considered this application in its meeting held on 11.03.2019 and sent it to the DGAP for investigation under Rule 129 (1) of the above Rules. It is apparent from the perusal of the details of the Electronic Credit Register attached as Annexure-8 with his Report by the DGAP that the Respondent has become entitled to the benefit of ITC during the period from July, 2017 to March, 2019. However, it has not been explained by the DGAP on which project the above ITC has become available to the Respondent and in case this ITC has become available on the purchases made in respect of the above project why the benefit of the above amount should not be passed on to the buyers of the houses in the above project - It is also revealed from the perusal of the e-mail dated 18.04.2019 sent by the ICICI Bank which has given loan to the Respondent for purchasing the above house that the Bank has released payment of Rs. 17,69,850/- vide cheque dated 20.05.2016 and an amount of Rs. 3,90,150/- vide cheque issued on 27.09.2016 in favour of the Respondent. Both the above cheques have been issued during the pre-GST period. It is further revealed that an amount of Rs. 5,40,000/- was released in favour of the Respondent vide cheque issued on 03.04.2018 during the post GST period. Based on the facts the Report dated 20.09.2019 furnished by the DGAP cannot be accepted and he is directed to further investigate the present case under Rule 133 (4) of the CGST Rules, 2017 on the following issues and submit his detailed Report under Rule 129 (6) of the Rules within a period of 3 months from the date of passing of this order:- (i) What was the basis of accepting the Completion Certificate issued by a private Architect? (ii) Which is the Competent Authority to issue the Completion Certificate in the State of Odisha? (iii) Whether the above Respondent has earned ITC on the above project during the period from July, 2017 till date? (iv) Whether the above Respondent has utilised the ITC during the period from July, 2017 till date for discharging his output GST liability in respect of the above project? (v) Whether the Respondent has claimed transitional credit through the TRAN-1 statements filed in respect of the above project? (vi) Whether the Respondent has availed benefit of additional ITC since July, 2017 till date and he is liable to pass on the same to his buyers? (vii) Whether the above land owners have sold their share of the houses and if so whether they have passed on the benefit of ITC to the buyers of these houses"? (viii) Whether Applicant No. 1 is entitled to the benefit of ITC? (ix) Whether rest of the 8 house buyers are eligible for the benefit of ITC?
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