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The Respondent has denied the benefit of ITC to the buyers of the flats being constructed by him in his Project ‘Sky Terraces’ in contravention of the provisions of Section 171 (1) of the CGST Act.

Anti-Profiteering — Section 171 of the CGST Act, 2017— The application filed alleging profiteering in respect of purchase of a flat in the project “Sky Terraces situated at V.T, Road, Mansarovar, Jaipur, from the Respondent. The Applicant alleged that the Respondent had not passed on the benefit of ITC by way of commensurate reduction in the price of the flat, on implementation of GST w.e.f. 01.07.2017. The DGAP submitted that the Respondent has contravened the provisions of Section 171 of the CGST Act, 2017 in as much as the additional benefit of ITC @5.38% of the base prices received by the Respondent during the period between 01.07.2017 to 30.04.2019, has not been passed on to the above Applicant and other recipients by him..
Held that:- The Hon’ble Anti-Profiteering Authority directed the Respondent to refund amount to the flat buyers along with interest as per the provisions of Rule 133 (3) (b). The Respondent is also directed to reduce the prices of his flats commensurately as per the details mentioned. Further held that the Respondent has denied the benefit of ITC to the buyers of the flats being constructed by him in his Project in contravention of the provisions of Section 171 (1) of the Act, therefore, liable for imposition of penalty.—Jai Prakash Garg, Director-General of Anti-Profiteering, Indirect Taxes & Customs Vs. Adarsh Thought Works Pvt. Ltd. [2020] 26 TAXLOK.COM 023 (NAPA)

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