TaxTMI 
TaxTMI 
2026 (7) TMI 1827
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.... I on 5th Floor, in the Respondent's project "Piramal Revanta Tower - 1", situated at Mulund West, Mumbai. 2. The complainant alleged that the Respondent had failed to pass on the benefit of Input Tax Credit (hereinafter referred to as "ITC") by way of commensurate reduction in price, upon the introduction of GST w.e.f. 01.07.2017, in contravention of Section 171 of the CGST Act, 2017. 3. The complaint was examined by the Standing Committee on Anti-Profiteering, which, upon being satisfied, forwarded the matter to the Directorate General of Anti-Profiteering (hereinafter referred to as "the DGAP") on 30.05.2022 for detailed investigation under Rule 129(1) of the CGST Rules, 2017. 4. It is noted that the investigation Directorate General Anti-profiteering (DGAP) investigated the project "Piramal Revanta Tower-1" executed by M/s. PRL Developers Ltd. and submitted its report dated 25.02.2023 under Rule 129(6) of the CGST Rules, 2017. 5. The report dated 25.02.2023 sent by the DGAP was pending for decision by the Competition Commission of India (CCI). In the interregnum, the Hon'ble Delhi High Court, in Reckitt Benckiser India Pvt. Ltd. v. Union of India, WP (C) 7743/2019 d....
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....s by reducing the prices agreed with customers, and that no bookings were made between August 2017 and April 2018, with subsequent sales freshly factoring in the GST benefits in the registered sale agreements. 9.4. The DGAP examined the CENVAT credit availed during the pre-GST period, the ITC availed under GST during the post-GST period, and the corresponding purchase value of goods and services. Based on the information furnished by the Respondent, the ratio of credit availed to purchase value was worked out as under: Table - A S.NO. PARTICULARS PRE-GST PERIOD POST-GST PERIOD 1. Purchase value of goods and services (Including taxes and duties) Rs. 18,89,72,608 Rs. 1,73,60,84,712 2. Credit of Central Excise Duty and Service Tax availed Rs. 2,64,56,163 3. Credit of VAT availed 4. Total Credit availed in Pre-GST Period Rs. 2,64,56,163 5. Net ITC of GST availed Rs. 27,95,64,127 6. Ratio of Credit availed to Purchase value 14.00% 16.10% 9.5. From the above computation, the DGAP observed that the ratio of credit availed to purchase value had increased from 14.0....
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.... passed on Rs. 99,67,875/- towards ITC benefit against the required amount of Rs. 43,68,253/-, thereby passing an excess benefit of Rs. 55,99,622/-, and consequently no profiteering had occurred. 12.3. It was further contended that the observation in Paragraph 25 of the DGAP Report stating that the Respondent had contravened Section 171 was merely a typographical error, as the findings recorded in Paragraphs 21, 23 and 26 clearly concluded that no benefit remained to be passed on and that the provisions of Section 171 had not been contravened. 12.4. Furthermore, the Respondent clarified the basis of the figures reflected in Table-A of the DGAP Report dated 13.12.2024. It was submitted that the purchase value of Rs. 18,89,72,608/- and corresponding CENVAT credit of Rs. 2,64,56,163/- for the pre-GST period pertained only to input services, as no credit had been availed on inputs during the relevant period. 12.5. The Respondent submitted that since Tower-1 was constructed simultaneously with Tower-2, Tower-3 and Tower-4, the common input service expenses were apportioned on the basis of the saleable area of Tower-1, which constituted 25.84% of the total saleable area of all f....
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.... 2. Credit of Central Excise Duty and Service Tax availed Rs. 2,64,56,163 - 3. Credit of VAT availed - - 4. Total Credit Availed in Pre-GST Period Rs. 2,64,56,163 - 5. ITC of GST Availed - Rs. 27,95,64,127 6. Ratio of Credit Availed to Purchase Value (in %) 11.87 16.10 14.2. Based on the revised figures, the DGAP observed that the ratio of ITC to purchase value increased from 11.87% during the pre-GST period to 16.10% during the post-GST period, resulting in an additional ITC benefit of 4.23%. Accordingly, the profiteered amount was recomputed as follows: Table -C Sr. No. Particulars Post-GST 1. Period A July, 2017 to March, 2023 2. Ratio of Credit availed to Purchase Value as per Table-A above (%) B 11.87 / 16.10 3. Increase in ITC availed Post-GST (%) C 4.23 4. Purchase Value of Goods and Services (Excluding Taxes and Duties) during Post-GST Period D Rs. 1,73,60,84,712 5. Total Savings on account of additional ITC Benefit (E = D x C/100) Rs. 7,34,36,383 6. Total Saleable Area / Carpet Area (in Sq. Ft.) F 3,33,130 7. ....
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....026. Shri Praveen Kumar, Additional Assistant Director, appeared as the Departmental Representative on behalf of the DGAP. Shri Shivam Batra and Shri Dhruv Tiwari, learned Advocates, appeared for the Respondent. ORDER 16. We have carefully considered the DGAP Reports, the written submissions and additional written submissions filed by the Respondent, the clarifications furnished by the DGAP pursuant to the directions of this Tribunal, and the material available on record. 17. It is observed that, pursuant to the directions issued by this Tribunal vide Order dated 16.02.2026, the DGAP re-examined the computation after incorporating the value of the goods component in the pre-GST purchase value. Consequently, the pre-GST purchase value was revised from Rs. 18,89,72,608/- to Rs. 22,28,20,724/-, resulting in the ratio of ITC to purchase value being recomputed at 11.87% during the pre-GST period as against 16.10% during the post-GST period. The additional ITC benefit available to the Respondent was thus recalculated at 4.23%, and the profiteered amount was recomputed at Rs. 78,56,041/-, or Rs. 87,98,766/- inclusive of GST. 18. It is further observed that the revised DGAP Rep....