2024 (2) TMI 1470

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....ent case are that a reference was received from the Standing Committee on Anti-profiteering to conduct a detailed investigation in respect of an application filed under Rule 128 of the Rules by Applicant No. 1. alleging profiteering in respect of construction service supplied by the Respondent. The Applicant No. 1 alleged that the Respondent had not passed on the benefit of Input Tax Credit (ITC) to him by way of commensurate reduction in the price of the Unit No. F-501 on Fifth Floor purchased from the Respondent in the project "Vertex Panache", situated at Kokapet, Gachibowli, Hyderabad on introduction of GST w.e.f. 01.07.2017, in terms of Section 171 of the CGST Act, 2017. The aforesaid reference was examined by the Standing Committee on....

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....pondent were linked with construction plan as well as payment plan i.e. mixed, the investigation has been carried out for the period 01.07.2017 to 31.05.2022 and not upto the date of receipt of occupation certificate in respective blocks. ii. As per the information submitted by the Respondent, the project under investigation i.e. "Vertex Panache" got Completion Certificate for A, B & F Blocks on 29.10.2019 and for C, D & E Blocks on 27.01.2020. The Respondent was not registered under RERA as the project was started before RERA came into existence. In the pre-GST regime, the Respondent had opted for Composition scheme under Telangana VAT Act, 2005. iii. The Respondent claimed that the price quoted to the customers who had b....

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....ch all the certified copies of sale deeds had been stated to be enclosed. From the above, the Respondent claimed to have passed on the benefit of ITC to the aforesaid 200 home buyers in accordance with the requirements of Section 171 of the CGST Act, 2017. It was also observed that, the Respondent claimed that the said clause had also been agreed to by the post GST buyers as was evident from the sale deeds. However, certified copies of 200 sale deeds had not been received from the Sub- Registrar office till date (as mentioned in the letter dated 22.02.2023). Further, the Respondent did not provide e-mail Ids and phone numbers of the buyers and therefore, the DGAP could not verify the claim of the Respondent from the home buyers. As....

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....to Rs. 3,00,18,756/- which included 12% GST on the base amount. vi. The DGAP has concluded that that the Respondent had realized an amount to the tune of Rs. 3,00,18,756/- in respect of 337 buyers (including GST), which was inclusive of profiteering for Applicant No.1 which was Rs. 49,140 (inclusive of GST). The Respondent had total 521 flats in the project "Vertex Panache". Out of 521 flats, 146 flats were unsold and the Respondent had booked 375 (521-146) flats till 31.05.2022, Out of these 375 flats, the Respondent had booked 137 flats in the pre-GST period and 238 flats in the post GST period. Out of 238 buyers (post GST bookings), 38 flats were sold after getting completion certificate and the same were excluded from the compu....

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....ations on the above submissions dated 23.08.2023 of the Respondent were sought from the DGAP under Rule 133(2A) of the CGST Rules, 2017. The DGAP vide letter dated 25.09.2023 has filed clarifications vide which the DGAP has stated that no certified copies of sale deeds have been received in the office of DGAP so far and the DGAP had considered all the available documents/data/evidences at the time of preparation of the Report dated 27.02.2023. 6. Copies of the DGAP's clarifications dated 25.09.2023 were forwarded to the Respondent/Applicant No. 1 for providing their counter reply/rejoinder. The Respondent vide letter dated 10.11.2023 submitted his rejoinder in which he reiterated his earlier submissions dated 23.08.2023 and further s....

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....The DGAP in his Report in Para 15 also stated that as and when all certified copies of sale deeds would be received from the Sub-Registrar, Gandipet, the same would be submitted to the Authority in due course and verification report would be submitted after scrutiny. During the proceedings before the Commission, the Respondent has filed his submissions and rejoinder vide which the Respondent has also stated that the price quoted to the customers in post GST regime is inclusive of the benefit u/s 171 of the CGST Act, 2017. The Respondent further submitted that the Sub- Registrar, Gandipet has sent the certified copies of sale deeds to the DGAP vide letter dated 22.02.2023 on the request of the DGAP. The Respondent has also provided DTDC Expr....