The National Anti-Profiteering Authority (NAA) imposed the penalty on M/s Relationship Properties Pvt. Ltd. for denying the benefit of Input Tax Credit (ITC) to flat buyers.
The Applicants, Venugopal Gella and Sanjay Mehta alleged profiteering by the Respondent, M/s Relationship Properties Pvt. Ltd. in respect of the purchase of a flat in the project “Parkwest Emerald” situated at, Bangalore.
In the said application the Applicant alleged that the Respondent had not passed on the benefit of ITC to the flat purchaser.
The Respondent has realized an additional amount of Rs.74,929 which includes both the profiteered amount of 3.62% of the taxable amount of Rs. 66,900 and 12% GST on the said profiteered amount from the Applicant.
The Authority headed by Dr. B.N. Sharma directed the Respondent to pass on the amounts of Rs. 3,03,19,184 and Rs. 74,929 to the other flat buyers and the Applicant respectively along with the interest of 18% per annum in terms of Section 171 (1) read with Rule 133 (3) (c) of the Rules from the dates from which the above amounts were collected by him from them till the payment is made within a period of 3 months.
“Accordingly, 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 projects commensurate with the benefit of ITC received by Nim as has been detailed above,” the Authority said.
The Authority directed that the concerned Commissioner CGST/SGST shall ensure that the benefit is passed on to the eligible flat buyers. In case the benefit is not passed on by the Respondent the Applicants or any other buyer shall be at liberty to approach the Karnataka State Screening Committee to Initiate fresh proceedings against the Respondent as per the provisions of Section 171 of the CGST Act, 2017.
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