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2022 (4) TMI 552 - NAPA - GSTProfiteering - benefit of additional input tax credit had not been passed on to the home buyers or not - period from July 2017 to September, 2020 - violation of the provisions of Section 171 (1) of the CGST Act, 2017 or not - time limitation - HELD THAT:- The service rendered by the Respondent by way of construction and development of the project was not in existence during the pre-GST regime. Also the Phase III of the project is it yet to be launched and has not been registered with RERA till date - In the present case for Phase II the draw of lots, allotment of units and receipt of payments has taken place in the post-GST era. It is also apparent from the record that the Respondent has received the Environment Clearance from the State Environment Impact Assessment Authority Haryana on 02.05.2019 before which he could not have started the execution of the project. On the basis of the sequence of the events it could be safely concluded that the above project has been started after coming in to force of the GST w.e.f. 01.07.2017. It is also clear that the homebuyers were allotted flats only after coming in to force of the GST w.e.f. 01.07.2017. As project was launched after implementation of the GST w.e.f. 01.07.2017, apparently there was no pre-GST tax rate or input tax credit availability that could be compared with the post-GST tax rate and the input tax credit, to determine whether there was any benefit that was required to be passed on by way of reduced prices. Phase III of the project it is yet to be launched and had not been registered with RERA till date. Thus, it is established that the Respondent has not contravened the provisions of Section 171 (1) of the CGST Act, 2017 and there are no merit in the instant case and the same is accordingly dismissed. Time Limitation - Rule 133(1) of the CGST Rules, 2017 - HELD THAT:- The quasi-judicial proceedings in the matter could not be completed by the Authority due to lack of required quorum of members in the Authority during the period 29.04.2021 till 23.02.2022, and that the minimum quorum was restored only w.e.f. 23.02.2022 and hence the matter was taken up for quasi-judicial proceedings vide Order dated 23.03.2022 and the Applicant No. 1 was given one more opportunity to file written submissions against the DGAP's Report. However, the Applicant No. 1 vide his email dated 29.03.2022 reiterated his earlier submissions made via email dated 13.12.2020 - this Order having been passed today falls within the limitation prescribed under Rule 133(1) of the CGST Rules, 2017.
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