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2019 (10) TMI 197 - NAPA - GSTProfiteering - “Lodha Eternis” project launched by the Respondents - benefit of Input Tax Credit (ITC) not passed - violation of provisions of Section 171 of the CGST Act, 2017 - imposition of penalty - HELD THAT:- The provisions of Section 171 of CGST Act, 2017 have been contravened by the respondents as they have profiteered an amount of ₹ 1,90,04,456/- inclusive of GST @ 12% on the base profiteered amount of ₹ 1,69,68,264/-. The respondents have also realised an additional amount to the tune of ₹ 37,065/- form the applicant no. 1 which includes both profiteered amount @ 2.62% of the taxable amount (base price) and the GST on the said profiteered amount. Accordingly the above amounts shall be paid to the above applicant and the other eligible house buyers by the respondents alongwith interest @ 18% from the date from which these amounts were realised from them till they are paid as per the provisions of Rule 133(3)(b) of CGST Rules, 2017. It is also evident that respondents have denied benefit of ITC to the buyers of the flats being constructed by them in their Lodha Eternis Project in contravention of the provisions of section 171(1) of CGST Act, 2017 and thus resorted to profiteering. Hence they have committed an offence u/s 171(3A) of CGST Act, 2017 and therefore they are apparently liable for imposition of penalty under the provisions of the above section - a SCN be issued to them directing them to explain why the penalty should not be imposed on them. A copy each of this order be supplied to both the Applicants, the Respondents, Commissioners CGST/SGST as well as the Principal Secretary (Town & Planning), Government of Maharashtra for necessary action.
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