Delhi High Court stays NAA Order confirming Anti-profiteering Charges on Pyramid Infratech

DGCEI - Delhi High Court - Taxscan

A division bench of the Delhi High Court has stayed the order passed by the National Anti-profiteering Authority (NAA) imposing penalty on the builders, Pyramid Infratech for not passing the benefit of Input Tax Credit (ITC) to the Applicants in respect of the construction services.

Justices Sanjiv Khanna and Chander Sekhar was considering a writ petition by the petitioner company raising an issue that whether the impugned order is appealable under Section 107 of the Central Goods and Services Tax Act, 2017.

On September, the NAA had passed the order while hearing applications filed by 109 home buyers who booked flats with the Respondent under the Haryana Affordable Housing Policy 2013 and paid Excise Duty and Value Added Tax (VAT) before the GST-rollout.

It was alleged that post-GST rollout, 12% tax was levied on the construction service which was further reduced to 8% w.e.f. 25.01.2018 but the benefit of Input Tax Credit (ITC) which was available to the Respondent and which was much more than the output tax liability of the Respondent had not been passed on to them and therefore the Applicants should not have been burdened with the entire GST of 12% or 8%.

“Since the present investigation is only up to 28.02.2018 any benefit of ITC which shall accrue subsequently shall also be passed on to the buyers by the Respondent. He shall not only pass on the benefit as has been mentioned above to the 109 Applicants who are before us but to all the 2476 buyers as they are identifiable. Respondent is further directed to refund or reduce the amount, to the extent calculated above to each and every buyer at the time of collecting the last installment along with the interest @ 18% per annum to be calculated from the date of the receipt of the excess amount from each buyer, within a period of 3 months from the date of receipt of this order,” the NAA said in its order.

taxscan-loader