2026 (4) TMI 359

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....se from the complaint made by Ms. Abha Tiwari, resident of C-302, Samridhi Grand Avenue, Plot No. GH09D, Techzone 4, Greater Noida West, Uttar Pradesh (for short "The Complainant") under rule 128 of the Central Goods and Services Tax Rules, 2017 (for short "the CGST Rule, 2017") alleging profiteering in respect of construction services provided by M/s. Samridhi Realty Pvt. Ltd., 438, Jagriti Enclave, Delhi - 110092 (for short "The Respondent") in their project "Samridhi Grand Avenue ". 2. The complainant has alleged that the Respondent did not pass on the benefit of Input Tax Credit (for short " the ITC") to her by way of commensurate reduction in the prices on purchase of flat in the above referred project on the introduction of GST w.e....

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.....2022. 8. The CCI remanded the matter to the DGAP under Rule 133(4) of the CGST Rules, 2017 to re-investigate as the methodology adopted by DGAP was held to be flawed by Hon'ble High Court of Delhi in Reckitt Benckiser India Pvt. Ltd. v. Union of India (2024) 14 Centex 374 (Delhi). 9. Pursuant thereto, a show cause notice was issued by the DGAP to the Respondent under Rule 129 of the CGST Rules, 2017, for redetermination of profiteering amount. In view of the submissions made by the Respondent and supporting documents placed on record and following the guidelines in Reckitt Benckiser (Supra), the DGAP submitted its report dated 05.12.2024. 10. The DGAP concluded that prior to the introduction of GST that is 01.07.2017, the Responde....

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....on, computed the amount of profiteering as under: (Amount in Rs.) Sl. No. Particulars Post-GST 1 Period A July, 2017 to May, 2024 2 Ratio of Credit availed to Purchase Value as per Table - A above (%) B 10.03/14.22 3 Increase in input tax credit availed post-GST (%) C 4.19 4 Purchase Value of Goods and Services (Excluding Taxes and Duties) during Post-GST Period D 1,78,83,95,412 5 Total Savings on account of additional ITC benefit E = D*C/100 7,49,33,768 6 Total saleable Area (in Sq. Ft.) as per list of buyers F 14,44,062 7 Total Savings Per Sq. Ft. G = E/F 51.89 8 Total Sold Area (in Sq. Ft.) till the date of Occupancy Certificate H ....

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....16. On the basis of the above the DGAP concluded that the Respondent has not contravened the provision section 171 of the CGST Act,2017. 17. The Principal Bench of the GST Appellate Tribunal (GSTAT), constituted under sub-section (3) of section 109 of CGST Act, 2017, has been empowered to examine and to adjudicate Anti-Profiteering cases w.e.f. 01.10.2024, vide Notification No. 18/2024-Central Tax dated 30.09.2024. 18. A notice was issued to the Complainants calling upon their objections against the DGAP report dated 05.12.2024. 19. The Complainants filed their objections wherein they denied that no benefit of reduction of rate of tax was passed on to them by the Respondent. 20. Notice was issued to the Respondent to submit thei....