NAA Orders Reimbursement of Profiteering Amount [Read Order]

Anit Profiteering Authority - CBEC - Taxscan

The National Anti-profiteering Authority (NAA) under the Central Goods & Services Tax Act, 2017, passed an order requiring the company to pay back the profiteering amount to the consumers.

The bench consists of Sh. B. N. Sharma (Chairman), Sh. J. C. Chauhan (Technical Member) and Ms. R. Bhagyadevi, (Technical Member).

The order was passed in the matter of Shri Diwakar Bansal and Director General of Anti-Profiteering v. M/s Horizon Projects Pvt. Ltd.

The Respondent Company was engaged in the business of constructions and real estate. In the present case, the petitions alleged profiteering by the Respondent, in respect of the purchase of Flats. The issue discussed whether Respondent has passed on the benefit of ITC to the owners by way of commensurate reduction in the price of the flat. The Authority also went on to discuss the quantum of price reduction also.

The Authority concluded that the Respondent had been profiteering from the sales of the flats in question and ordered the reimbursement of the amount profiteered. The Authority further held that Respondent has denied the benefit of ITC to the buyers and “hence he has committed an offence under section 171 (3A) of the CGST Act, 2017 and therefore, he is liable for imposition of penalty under the provisions of the above Section”.

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