TaxTMI 
TaxTMI 
2023 (12) TMI 149
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....of the Central Goods & Service Tax (CGST) Rules, 2017 pursuant to Interim Order No 38/2020 dated 11.12.2020 passed by the erstwhile National Anti-Profiteering Authority (NAA) in respect of the investigation report of DGAP dated 31.08.2020. 2. The brief facts of the present case are that the Applicant No. 1 had filed an application under Rule 128 of the CGST Rules, 2017 alleging profiteering by the Respondent in respect of purchase of Flat No. J-062, Tower-J, 6th Floor in the Respondent's project "The Sky Court", in the DLF Garden City, Sector-86, Gurugram. The DGAP has investigated the case and submitted its Report dated 31.08.2020 vide which it has been inter-alia reported that:- a. The period of investigation is from 01.07....
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....ntroduction of GST was lower by 0.71% [26.85% (-) 26.14%] of the turnover as compared to the pre-GST period. Thus, there was no additional benefit of ITC, on implementation of GST w.e.f. 01,07.2017 and hence, the provisions of Section 171 of the CGST Act, 2017 were not attracted. d. Further, the Applicant No. 1 had purchased the flat from the Respondent after issue of the Occupancy Certificate of the project "The Sky Court". Since there was no additional benefit of ITC in post-GST period, no profiteering could have been established in the case of Applicant No. 1 in terms of Section 171 of the CGST Act, 2017. 3. In pursuance to the above Report of the DGAP dated 31.08.2020, the NAA, had observed certain discrepancies in the DGAP&....
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.... c. The units sold prior to Completion/Occupancy Certificate, would continue to fall within the purview of GST and on all the demands raised by the supplier against such units after receipt of Completion/Occupancy Certificate GST would be attracted. Therefore, the ITC available to the supplier could be availed by the supplier at the time of discharging his GST liability against such units. d. While issuing Notice for initiation of investigation (NOI), in the cases of investigations pertaining to supply of construction service, the status of project was not known whether Completion/Occupancy Certificate had been obtained by the supplier or not. Even if, in any case, it was known that the Completion/Occupancy Certificate had....
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....ted written submissions in respect of the above report of the DGAP. Notice dated 09.03.2021 was also issued to Respondent directing him to explain why the above Report furnished by the DGAP should not be accepted and his liability for violation of the provisions of Section 171 of the CGST Act, 2017 should not be fixed. 6. The Respondent filed his submissions dated 25.03.2021 and 24.03.2022 vide which he stated that he did not want to file any submissions/objection against the report of the DGAP and requested to accept the report of the DGAP and pass the necessary order. 7. The Applicant No. 1 filed his submissions vide e-mail dated 04.04.2022 and stated that he purchased a ready to move in flat where no GST was applicable. However, th....
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....arefully considered the Reports furnished by the DGAP, the submissions made by Respondent and the Applicant No. 1 and the other material placed on record and it is found that:- a. The Applicant No. 1 had filed complaint in respect of purchase of a Flat in the Respondent's project "The Sky Court", in the DLF Garden City, Sector-86, Gurugram and had alleged that sale of flats after issuance of Completion Certificate did not attract GST and that the Respondent had charged GST @18% on the Preferential Location Charges (PLC). b. The DGAP had filed his report dated 31.08.2020 stating that post-GST, the Respondent has not been benefited from any additional ITC and in fact, the ITC availed by the Respondent post introduction o....