TaxTMI 
TaxTMI 
2026 (3) TMI 1237
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....rred to as the "DGAP") under Section 171 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the "CGST Act"), read with Rule 129 of the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the "CGST Rules").". The investigation was initiated pursuant to a complaint referred by the Standing Committee on Anti-Profiteering on an application filed by Shri Rahul Kesarwani, H-3, 705 Raunak Heights, Ghodbundar Road, Near Unnathi Green, Behind D Mart, Thane - 400615 (hereinafter referred to as "the Applicant") alleging profiteering in respect of construction services supplied by Ms. Unnathi Associates, Raunak Group, Plot No.1, Mohan Compound, Next Audi, Thane West-400607 (hereinafter referred to as "the Res....
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....,08,931 2. Credit of Service Tax availed 13,03,738 - 3. Credit of VAT availed - 4. Total Credit Availed in Pre-GST Period 13,03,738 - 5. ITC of GST Availed - 5,43,96,003 6. Ratio of Credit Availed to Purchase Value (in %) 7.67 12.08 "A perusal of Table 'A' clearly reveals that the Input Tax Credit (ITC) available to the Noticee as a percentage of the purchase value during the pre-GST period was 7.67%, which increased to 12.08% during the post-GST period in respect of the project 'Raunak Heights'. The above comparison unequivocally establishes that the Respondent has derived the benefit of additional Input Tax Credit under the GST regime. In terms of Section 171 of the CGS....
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..... Purchase Value of Goods and Services (Excluding Taxes and Duties) during Post-GST Period D 45,02,08,931 5. Total Savings on account of additional ITC benefit E = D*C/100 1,98,54,214 6. Total Saleable Area (in Sq. Ft.) F 1,04,038 7. Total Saving Per Sq. Ft. G = E/F 190.84 8. Total Sold Area (in Sq. Ft.) in pre-GST period H 19,661 9. Profiteered Amount I = G * H 37,52,105 5. Thus, the DGAP has concluded that the Respondent has saved/profiteered by an amount of Rs. 37,52,105/- plus GST @12% Rs. 4,50,252/- i.e., totalling to Rs. 42,02,357/- (Forty-Two Lakh Two Thousand Three Hundred and Fifty-Seven rupees). The benefit of ITC of Rs. 35,48,496 has already passed. Hence, th....
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....ct. He also relied upon the judgments in CCE v. Elgi Equipment Ltd., 2001 (128) ELT 52 (SC); Marcandy Prasad Radhakrishna Prasad Pvt. Ltd. v. CCE, 1998 (102) ELT A121 (SC); Commissioner v. Supra Foundry Devices (P) Ltd., 2001 (132) ELT 543 (Kar); and DGAP v. Procter & Gamble Group, (2025) 35 Centax 77 (Tri.-GST Delhi) with regard to the issue of penalty. 7.2 With regard to Interest to be levied, the authorised Representative submitted that there is no substantive charging Provision in the Act. In support of this, the Respondent relied upon the judgments in the matter of J.K Synthetics Ltd. Vs. CTO-1994, 4 SCC 276 and CCE v. Utkal Pradesh Sahakari Khand Udyog Mandil Ltd. Further, the Respondent has submitted that there is an absence of a ....
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....tion. However, since the provisions of Section 171 (3A) have come into force w.e.f. 01.01.2020, whereas the Occupation Certificate received in this project is December 2019, hence the period during which the violation has occurred is w.e.f. 1st July, 2017 to 31.12.2019. Further section 171 (3A) clearly express that no penalty shall be levied if the amount is deposited within thirty days of the order of determination. In the present case, the Respondent had refunded the entire amount to the eligible homebuyers. Hence, the penalty prescribed under the above Section cannot be imposed on the Respondent. 8.4 FINDINGS ON INTEREST:- In respect of the issue of interest, reference may be made to the judgment of the Hon'ble Delhi High Court in ....
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....cted from the buyers. The Provisions with respect to interest are as follows:- Rule 133 (3)(b) - return to the recipient, an amount equivalent to the amount not passed on by way of commensurate reduction in prices along with interest at the rate of eighteen percent. from the date of collection of the higher amount till the date of the return of such amount or recovery of the amount including interest not returned, as the case may be. Above Rule 133(3)(b) of the CGST Rules, therefore, mandates that the amount not passed on must be returned along with interest at the rate of 18% per annum from the date of collection of such higher amount until the date of refund. Interest in such cases is compensatory in nature and ensures restitu....