Input tax credit profiteering inquiry sent back for fresh examination after turnover and RERA discrepancies emerged.

NAPA directed further reinvestigation under Section 171 of the CGST Act where the record showed discrepancies between turnover and input tax credit figures and the DGAP had examined only one block of a larger project. The Authority considered it necessary to verify whether the additional ITC benefit had been passed on across the entire project and whether the project-wise RERA registration, accounting, and bank-account requirements were complied with. The matter was sent back for fresh examination and the alleged profiteering quantum was to be recomputed after further inquiry, with no final adjudication on the existing record.

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Issues: Whether the matter required further investigation into the alleged non-passing of input tax credit benefit under Section 171 of the Central Goods and Services Tax Act, 2017, in view of discrepancies in turnover and ITC figures and the need to examine the project-wise RERA compliance.

Analysis: The Authority noted that the DGAP's investigation had proceeded on the basis of one block of the project, while the promoter had obtained separate RERA registrations for multiple blocks. It also found significant variations between the figures adopted in the DGAP's report and the statutory returns filed by the respondent. In these circumstances, the Authority considered it necessary to verify whether the benefit of additional input tax credit had been passed on across the wider project and whether the project-wise accounting and bank-account requirements under the RERA framework had been complied with.

Conclusion: The matter was directed to be reinvestigated and the quantum of profiteering was required to be recomputed after further inquiry.

Final Conclusion: No final adjudication on profiteering was returned on the existing record and the controversy was sent back for fresh examination.

Ratio Decidendi: Where the record reveals material inconsistencies in the tax data and a potentially incomplete project-wise investigation, a further inquiry may be directed before any final anti-profiteering determination is made.

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