Reversal of input tax credit in proportion to exempt supply: specificity of show-cause notice required; order set aside, fresh proceedings allowed wit...
Benami transaction and beneficial ownership: documentary and circumstantial evidence show payors were true beneficiaries, resulting in PBPTA consequen...
Failure to pass on input tax credit benefits under GST was found to constitute profiteering, as the post-GST ITC-to-purchase ratio increased on verified audited figures and the respondent retained the additional benefit instead of passing it to homebuyers. The determined profiteered amount was ordered to be refunded to eligible homebuyers with interest at 18% per annum from the respective dates of collection until refund. Penalty under Section 171(3A) was not imposed because the violation period predated its commencement and the respondent had refunded the amount, attracting the statutory proviso against penalty.
Failure to pass on input tax credit benefits under GST was found to constitute profiteering, as the post-GST ITC-to-purchase ratio increased on verified audited figures and the respondent retained the additional benefit instead of passing it to homebuyers. The determined profiteered amount was ordered to be refunded to eligible homebuyers with interest at 18% per annum from the respective dates of collection until refund. Penalty under Section 171(3A) was not imposed because the violation period predated its commencement and the respondent had refunded the amount, attracting the statutory proviso against penalty.
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