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2019 (11) TMI 1082 - NAPA - GSTProfiteering - purchase of flats in the Respondents project “Green Court” situated in Sector 90, Gurugram, Haryana. Sh. Shaurabh Prabhakar - it is alleged that the Respondent had not passed on the benefit Of Input Tax Credit (ITC) to them by way of commensurate reduction in the price of the flats - contravention of the provisions of 171 of CGST Act - penalty - HELD THAT:- As per the provisions of section 171 of the CGST Act, 2017, the benefit of the additional ITC which was accrued to the respondent in the post-GST period is required to be passed on to the applicants as well as the other home buyers. Based on the amount collected by the respondent from the applicants and the other home buyers during the period from 01.07.2017 to 24.01.2018, the amount of benefit of ITC which is required to be passed on by the respondents to the recipients or in other words, the profiteered amount comes to ₹ 2,68,17,079/- which includes 12% GST on the base profiteered amount of ₹ 2,39,43,820/-. Penalty - HELD THAT:- It is evident 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 committed as per the provisions of section 171 (3A) of the CGST Act, 2017 - a SCN be issued to him directing him to explain why the penalty prescribed under the above provision should not be imposed.
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