TaxTMI 
TaxTMI 
2022 (5) TMI 958
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....estigated the matter in detail and submitted his Report dated 24.04.2019 to this Authority on 24.04.2019. Vide his Report dated 24.04.2019, the DGAP had informed that the Respondent had additionally benefited with Input tax Credit (ITC) @ 0.28% i.e. amounting to Rs. 2,13,468/- (including GST) during the period from 01.04.2017 to 31.10.2018 which was to be passed by the Respondent to the eligible home buyers of the aforesaid project in terms of the provisions enshrined under section 171 of the Central Goods and Services Tax (CGST) Act 2017. This Authority had carefully examined the DGAP's Report dated 24.04.2019, submissions of the Respondent and all the documents placed on record and passed a detailed and reasoned order vide Order No. 51/2019 dated 21.10.2019 as per Rule 133 (1) of the CGST Rules 2017 confirming the profiteered amount of Rs. 2,13,468/- as computed by the DGAP for Phase-II of the Project "River View Heights" of the Respondent and directed the latter to pass on the same alongwith interest @18% to the eligible home buyers of the said Project and to reduce the price to be realized from the buyers of the flats commensurate with benefit of ITC received by them. 2. D....
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....t in response to his notice dated 30.10.2019, the Respondent furnished his reply vide letters and e-mails dated 11.03.2020 and 07.08.2020. The detailed submissions of the Respondent are quoted as follows: - (a) the Respondent's firm "Shree Infra" was a builder and was engaged in the business of developing and construction activity. (b) Phase wise details of the Project" River view Heights" are as per Table-A below: - Phase Building Number Date of Commencement Date of BUC/OC Received RERA Applicability Total Land Area of the Project Phase-I A, J, K, L, M 13.11.2009 A-16.08.2014 J-07.10.2011 K-05.10.2013 L-02.04.2011 M-06.08.2012 Project Completed before RERA Applicable 16,139.30 Phase-II B1, B2, H1, H2, I 31.12.2014 B1, B2, H1, H2 30.03.2019 Building "I" still under construction RERA Registered Project 16,087.70 Phase-III C1, C2, D1, D2, E1, E2, F1, F2 Yet not registered as construction of the remaining Building was not started till date 26,402.00 (c) the provisions of Anti-profiteering would not be applicable in respect of Phase-I of the Project since the said Phase had been completed before GST. The profiteered amount in relation to Phase....
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....ive rate was 12% in view of 1/3rd abatement on value) on construction service vide Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017 and the effective GST rate on construction service in respect of affordable and low-cost houses upto a carpet area of 60 square metres was further reduced to 12% GST (effective rate was 8% in view of 1/3rd abatement on value), vide Notification No. 1/2018-Central Tax (Rate) dated 25.01.2018 (in respect of affordable and low-cost house upto a carpet area of 60 square meters). Further, vide Notification No. 03/2019-Central Tax (Rate) dated 29.03.2019, GST on construction services in respect of affordable and low-cost houses upto a carpet area of 60 square metres was 1% (1.5-1/3 of 1.5 i.e. 0.5) and no ITC eligible under the said Notification. (x). the DGAP has also reported that this Authority in para-18 of its Order dated 21.10.2019 had observed the following:- (a). the RERA Registration Certificate of the project provided by the Respondent to the DGAP as well as to this Authority mentions "River View Heights" from which it could be inferred that the investigation had only been restricted to phase-II of the Project ignoring the other ph....
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....been investigated and profiteering had been confirmed by this Authority. Hence, the same was not required to be looked into again. (ii) The Project "River View Heights Phase-I", had been completed before GST and after the verification of BUC/OCs (which are mentioned in Table-B' below), it was observed that the Respondent had completed all the Buildings viz. A, J, K, L & M of the "River View Heights Phase-I" before the introduction of GST and the Occupancy Certificate (OC) was received by the Respondent in respect all the Buildings of "River View Heights Phase-I" on the dates tabulated below and (iii) The Project "River View Heights Phase-Ill" was not registered under RERA till date. Table-'B' Project Name Building Number and Date of BUC/Occupancy Certificate Received River View Heights Phase-I A:- 16.08.2014 J:- 07.10.2011 K:- 05.10.2013 L:-02.04.2011 M:-06.08.2012 (xiv). the DGAP has stated that Section 171 of the CGST Act, 2017 came into play in the event where there was a reduction in the rate of tax or there was an increase in the benefit of input tax credit. In the present case; (a) the Project "River View Heights Phase-I" was not in existence in the GST perio....
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.... of the DGAP. Since the said Phase-I was not in existence in the GST period and the said Phase-III was yet to be started/registered as on 27.08.2020 hence, the Anti-Profiteering provisions under Section 171 of the CGST Act 2017 are not applicable on the said Phase-I and Phase-III of "River View Heights" of the Respondent. 7. Given our above findings, we conclude that the instant case does not fall under the ambit of the Anti-Profiteering provisions of Section 171 of the CGST Act, 2017. Accordingly, the present proceedings ordered vide para 18 of the Order No. 51/2019 dated 21.10.2019 stand concluded and the Report dated 27.08.2020 by the DGAP is accepted. 8. As per the provisions of Rule 133 (1) of the CGST Rules, 2017 this Order was required to be passed within a period of 6 months from the date of receipt of the Report from the DGAP under Rule 129 (6) of the above Rules. Since, the present Report has been received by this Authority on 31.08.2020, the Order was to be passed on or before 01.03.2021. However, in view of the Para 5 of Hon'ble Supreme Court's Order dated 10.01.2022 passed in Suo Moto Writ Petition (Civil) No. 3 of 2020 wherein the Hon'ble Supreme Court h....