Challenging Authority's Order: Input Tax Credit Dispute Halts Investigations Under GST Rule 138

HC analyzed a challenge to National Anti-Profiteering Authority's order regarding Input Tax Credit non-transfer to flat buyers. Court issued notice to respondents and restrained further investigations and penalties. Petitioner disputed quantification methodology, highlighting limited buyer response. Interim relief granted, with matter listed for subsequent hearing, effectively pausing punitive actions against the petitioner.

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Issues involved: Impugning an order by National Anti-Profiteering Authority u/s 171 of CGST Act regarding profiteering in passing Input Tax Credit on construction services to flat buyers.

Summary:
The petitioner challenged an order by the National Anti-Profiteering Authority alleging profiteering by not passing on Input Tax Credit (ITC) to flat buyers. The Authority determined an additional amount realized by the petitioner and held it guilty of profiteering. The petitioner disputed the methodology used for quantification, claiming that only 90 out of 535 flat buyers responded confirming the benefit transfer. The petitioner argued that the methodology was arbitrary and lacked confirmation from all flat buyers. The Court issued notice to the respondents, and the petitioner cited interim orders from previous cases staying penalties and investigations related to similar challenges to Section 171 of the CGST Act and Rule 122 of the CGST Rules. Consequently, the respondents were restrained from further investigations and penalties, with a stay on demanded penalty and interest. The matter was listed for further proceedings on 29.08.2023.

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