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2022 (7) TMI 67 - NAPA - GSTProfiteering - purchase of fiats - it is alleged that the benefit of input tax credit had not been passed on to the Applicant No. 1 and Applicant No, 2 by way of commensurate reduction in prices - Contravention of section 171 of CGST Act - penalty - HELD THAT:- The Respondent has benefited from the additional ITC to the extent of 6.55% of the turnover during the period from 01.07.2017 to 31.03.2019 amounting Rs.4,74,88,840/- It has been verified by the DGAP that the Respondent has already passed on benefit amounting to Rs.1,88,56,367/- to 772 homebuyers. Hence. the Authority finds that. the profiteered amount required to be returned/passed on by the Respondent is Rs, 2,86,32,474 (inclusive of GST @ 12%/ 8% on the base price) as is evident from the above Report dated 28 08.2020. Hence, the Authority holds that the provisions of Section 171 (1) of the CGAT Act, 2017 have been contravened by the Respondent. The Respondent has realized an additional amount of Rs.34,418/- each from Applicant no, 1, 2 & 3. Rs.36,120/- from the Applicant no. 4. Rs.27,510/- each from Applicant no. 5, 7, 8, 9. 10, 11. 12,15. Rs.36.120/from the Applicant no. 6, Rs.48,029/- from the Applicant no. 13, Rs.70.068/from the Applicant no. 14. and Rs.71,868/-from the Applicant no. 16 and an additional amount of Rs.2,80,46,934/- from 772 flat buyers other than the above Applicants. The details of the amount of benefit of ITC passed on - These buyers are identifiable as per the documents placed on record. Therefore, the Respondent is directed to pass on an amount of Rs.34,418/- each to Applicant No. 1, 2 & 3, Rs.36,120/- to the Applicant No. 4, Rs.27.510/- each to Applicant No. 5, 7, 8. 9, 10. 11. 12.15, Rs.36,120/to the Applicant No, 6, Rs.48,029/- to the Applicant No. 13. Rs.70.068/- to the Applicant No. 14, and Rs.71,868/- to the Applicant No. 16 and Rs.2,80,46,934/- to the other 772 home buyers respectively along with the interest @ per annum from the dates from which the above profiteered amount was collected by him from them till the payment is made as prescribed under Rule of the CGST Rules. 2017. The Authority directs the Respondent to comply with this Order within a period of three months from the date of receipt of this order failing which the said amount shall be recovered in terms of the CGST Act, 2017. This Authority under Rule 133 (3) (a) of the CGST Rules, 2017 orders that the Respondent shall reduce the prices to be realized from the buyers of the flats of the above Project commensurate with the benefit of ITC received by him - This Authority as per Rule 136 of the CGST Rules 2017 directs the Commissioners of CGST/SGST Gurugram, Haryana to monitor compliance of this order under the supervision of the DGAP by ensuring that the amount profiteered by the Respondent. as determined by this Authority, is passed on to all the eligible buyers. It may be ensured that the benefit of ITC is passed on to each homebuyer as per Annexure- A attached with this Order along with interest @18%. This Order having been passed today falls within the limitation prescribed under Rule 133(1) of the CGST Rules, 2017.
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