The National Anti-Profiteering Authority ( NAA ) ruled that since the Respondent Company has neither been benefited from additional Input Tax Credit (ITC) nor has there been a reduction in the tax rate in the post-GST period, Section 171 of the CGST Act, 2017 is not applicable.
The Bench consisting of Sh. B. N. Sharma, Sh. J. C. Chauhan, and Sh. Amand Shah, made the present ruling in the case of Sanjay Dewan and Ors v. M/s Vatika Ltd.
The applicants in the case present case forwarded an application to the Haryana State Screening Committee on Anti-Profiteering. The application stated that the that the Respondent had resorted to profiteering in respect of supply of construction services related to purchasing of Flat and also alleges that the Respondent had not passed on the benefit of Input Tax Credit (ITC) by way of commensurate reduction in the price of the apartment purchased by him, on implementation of GST. The application was forwarded to the Director-General of Anti-Profiteering for investigation. The present appeal lies from the order of the state Screening Committee on Anti-Profiteering
The Authority, while considering the case pointed out that, “It is clear from the plain reading of Section 171(1) mentioned above that it deals with two situations one relating to the passing on the benefit of reduction in the rate of tax and the second pertaining to the passing on the benefit of the ITC.”
Relying on the DGAP’s Report, the Authority further held that there has been no reduction in the rate of tax in the post GST period. The Authority also further pointed that “DGAP has concluded his Report with the findings that the Respondent had neither been benefited from additional ITC nor there had been a reduction in the tax rate in the post-GST period.”
The Authority concurred with the findings of DGAP and held that the provisions of Section 171 of CGST Act, 2017 are not liable to be invoked in the present case.
Subscribe Taxscan Premium to view the Judgment
