The National Anti-Profiteering Authority (NAA) found the respondent Elan Ltd. guilty of not passing the Input Tax Credit (ITC) benefits to the shop buyers.
The applicant filed the complaint alleging profiteering by the Respondent, Elan Ltd. in respect of purchase of Shop in the project “Mercado” situated in Gurugram.
The Applicant has alleged that the Respondent had not passed on the benefit of input tax credit to him by way of commensurate reduction in the price of the Shop and had also charged 12% GST on the installments paid by him.
The NAA headed by the chairman, Dr. B.N.Sharma noted that the respondent while contravening the provisions of Section 171 of the CGST Act, 2017, has benefited from the additional ITC to the extent of 5.91% of the turnover during the period from July, 2017 to June, 2019.
The Profiteering watchdog determined the profiteered amount as Rs.2,44,80,835 inclusive of 12% GST in terms of Section 171 (1) read with Rule 133 (1).
The Authority under Rule 133(3)(a) of the CGST Rules, 2017 ordered that the Respondent shall reduce the prices to be realized from the buyers of the shops of the above project commensurate with the benefit of ITC received by him as has been detailed above.
“Since the present investigation is only up to 30.06.2019 any benefit of ITC which accrues subsequently shall also be passed on to the buyers by the Respondent. The Commissioner CGST/SGST Haryana are directed to ensure that the Respondent passes on the benefit of ITC till the Completion Certificate is received by the Respondent,” the NAA added.
However, the NAA did not impose the penalty under Section 171 (3A) as it was not in operation during the period from July 1, 2017, to June 30, 2019, when the Respondent had committed the violation and hence, the penalty prescribed under Section 171 (3A) cannot be imposed on the Respondent retrospectively.
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