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2020 (7) TMI 507 - NAPA - GSTProfiteering - purchase of flat - allegation that the benefit of input tax credit not passed on - contravention of section 171 of CGST Act - penalty - HELD THAT:- The respondent has benefiteed from the additional ITC to the extent of 7.06% of the turnover during the period from 01.07.2017 to 31.10.2019 and hence the provisions of Section 171 of the CGST Act, 2017 have been contravened by the repsondent as he has not passed on the benefit to his customers and thus, he has profiteered an amount of ₹ 2,87,64,178/- inclusive of GST @ 12% as is evident from the report. The respondent has denied benefit of ITC to the buyers of the flats being constructed by him in the project in contravention of section 171 (1) of CGST Act, 2017 and thus he has resorted to profiteering. Penalty - HELD THAT:- The respondent has committed as offence u/s 171(3A) of CGST Act, 2017 and therefore, he is apparently liable for imposition of penalty - accordingly, a SCN be issued to him directing him to explain why the penalty prescribed u/s 171 (3A) of the Act read with Rule 133(3)(d) of CGST Rules, 2017 should not be imposed on him.
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