GST: NAA orders Reinvestigation on Profiteering Charges against Prestige Real Estate Ltd

NAA - Reinvestigation - Profiteering Charges - Prestige Real Estate Ltd - taxscan

The National Anti-Profiteering Authority ( NAA )  has ordered reinvestigation on profiteering charges against Prestige Real Estate Limited.

In the application filed by Mr. Deepak Naik, one of the flat buyers in an underway project of M/s Prestige Estate Pvt. Ltd, alleging that the latter has not passed on the benefit of Input Tax Credit to him, by way of commensurate reduction in flat Price, the National Anti-Profiteering Authority directs the Director-General of Anti-Profiteering to conduct re-investigation.

The direction was made rejecting the claim of M/s Prestige Estate Pvt.Ltd that the benefit of Income Tax Credit had been passed to the home buyers. The National Anti-Profiteering Authority, vide detailed order passed after considering various documents including the investigation report of the Director-General of Anti-Profiteering, mandated that the claim of M/s Prestige Estate Pvt. Ltd having passed the Income Tax Credit benefit needs to be verified against third party evidence in the form of written acknowledgment receipts from home buyers evidencing the receipt of benefit, including its quantum. The Authority was of the considerate opinion that the onus to prove such claim is undoubtedly upon M/s Prestige Estate Pvt. Ltd, and hence they shall procure the acknowledgment of receipt of an aforesaid benefit from respective home buyers along with their contact details, including e-mail id and mobile/phone number. The Authority further mandated that such acknowledgment shall be procured within 30 days of order, which shall be subject to examination by the Director-General of Anti Profiteering.

Moreover, the Authority observed that the investigation report of the Director-General of Anti Profiteering being silent as to whether M/s Prestige Estate Pvt. Ltd had paid applicable interest on the profiteered amount, to eligible flat buyers/customers, to verify whether such payment was made from the date from which amount was profiteered till the date of passing on/payment as per provisions of Sec.133(3)(b) of Central Goods and Services Tax Rules 2017.

Accordingly, the matter was sent to the Director General of Anti Profiteering for further investigation and submission of report thereof under Rule 129(6) of Central Goods and Services Tax Rules 2017.

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