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2020 (1) TMI 1585 - NAPA - GSTProfiteering - purchase of Flats - it is alleged that the Respondent had not passed on the benefit of Input Tax Credit (ITC) availed by way commensurate reduction in the price of the flats - contravention of section 171 of CGST Act - HELD THAT:- The Respondent has indeed benefited on account of ITC to the extent of 3.31% of his turnover during the post-GST period, i.e. from July, 2017 to December, 2018 and hence the provisions of Section 171 of the CGST Act, 2017 have been contravened by the Respondent since he has not passed on the above benefit to his home buyers. Further he has profiteered to the extent of Rs. 1,42,45,741/-, inclusive of GST @ as applicable, on the base profiteered amount of Rs. 1,29,68,303/-. Further, it is clear to us that the Respondent has realized additional amounts of Rs. 70,728/- from the Applicant No. 1, inclusive of GST. The Respondent has also realized an additional amount of Rs. 1,41,75,013/- (inclusive of GST as applicable) from all other home buyers than the Applicant No. 1. The total amount of profiteering on part of the Respondent works out to be Rs. 1,42,45,741/- (Rs. 1,75,013 + Rs. 70,728/-) and the same is tabulated in Annexure- 19 of the Report of the DGAP dated 02.07.2019 - the DGAP is directed to further verify the amount of ITC benefit claimed to have been passed on to his home buyers by the Respondent as per the provisions of Rule 133 (4) of the above Rules and submit his Report clearly mentioning the verified amount of benefit passed on by the Respondent to his home buyers and the balance amount still to be passed on to each of the home buyers.
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