The National Anti Profiteering Authority ( NAA ) in a case filed against M/s Caroa Properties LLP held that the respondent had denied the benefit of ITC to the buyers of the flats and the shops being constructed by him in his Project ‘Godrej City Panvel Phase-I’ in contravention of Section 171 (1).
Applicant No. 1 had filed an application submitting that he had purchased a flat in the Respondent’s project situated at Raigarh and alleged that the Respondent had not passed on the benefit of ITC to him by way of commensurate reduction in the price of the flat.
The Respondent claimed to pass off the benefit of 3.35% of the base price to the eligible customers of the present project by way of reduction in prices under the GST regime. He submitted that the supplies which were fully provided in the GST regime, would not attract the Anti-profiteering provisions. Further that the complaint is vexatious for the reason that the Applicant booked the unit in GST regime itself. Also, the comparison of the ratio of ITC to turnover for the pre-GST and post-GST periods was not the correct mechanism for calculation of the profiteered amount.
The Respondent also referred to the ‘Net Dollar margin Rule’ framed by the Government of Australia concerned with the same amounts of fixing of prices which is not the intention of the provisions of Section 171 as its purposes to only pass on the above two benefits and does not propose to control the prices.
The Quorum constituting of B.N. Sharma, J.C. Chauhan and Amand Shah while rejecting the contentions made by the respondent as laid out above, held that the respondent had denied benefit of ITC to the buyers of the flats and the shops being constructed by him in his Project ‘Godrej City Panvel Phase-I’ in contravention of Section 171 (1).
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