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2019 (10) TMI 1083 - NATIONAL ANTI-PROFITEERING AUTHORITYProfiteering - purchase of a flat in the Respondent’s project “ROF Aalayas” in Sector-102, Gurgaon, Haryana - benefit of input tax credit not passed by way of commensurate reduction in price at the time of introduction of GST w.e.f. 01.07.2017 - contravention of provisions of Section 171 of the CGST Act, 2017 - Penalty - HELD THAT:- The provisions of Section 171 of the CGST Act, 2017 have been contravened by the Respondents as he has profiteered an amount of ₹ 2,47,48,549/- which includes GST @12% or 8% as applicable on the base profiteered amount of ₹ 2,28,05,373/- from all the 731 residential units for the period w.e.f. 01.07.2017 to 31.09.2018 as per Annexure- 13 of the Report. Accordingly, the above amounts shall be paid to the above Applicants and the other eligible house buyers by the Respondents along with 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 the CGST Rules, 2017, failing which shall be recovered by the concerned Commissioner CGST / SGST and paid to the eligible house buyers - it is clear that the Respondent has profiteered an amount of ₹ 2,47,48,549/- for the period of investigation. Therefore, in view of the above facts the Authority under Rule 133 (3) (a) of the CGST Rules, 2017 orders that the Respondent shall reduce/refund the price to be realized from the buyers of the flats commensurate with the benefit of ITC received by him As far as the total additional input tax credit that will be available to the Respondent is concerned it cannot be determined at this stage when the construction of the project is yet to be completed and the DGAP is directed to carry out a comprehensive investigation at the time of issue of occupancy certificate. Penalty - HELD THAT:- It is evident from the above that the Respondent has denied the benefit of ITC to the buyers of the flats being constructed by him in contravention of the provisions of Section 171(1) of the CGST Act, 2017 and has thus realized more price from them than he was entitled to collect. Therefore, he is liable for imposition of penalty under Section 171 (3A) of the CGST Act. Accordingly, a Show Cause Notice be issued to him directing him to explain why the penalty prescribed should not be imposed on him. Application disposed off.
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