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Respondent has denied the benefit of ITC to the buyers of the flats being constructed by him in his Project ‘Vedantam’ in contravention of the provisions of Section 171 (1) of the CGST Act, 2017. Therefore, he is apparently liable for imposition of penalty

Anti-Profiteering — Section 171 of the CGST Act, 2017— The report has been received from the DGAP. A reference was received from the Standing Committee on Anti-profiteering, alleging profiteering by the Respondent in project “Vedantam”, located at Plot No. 1-B, Sector-16, Greater Noida, U.P. The Applicant alleged that the Respondent had not passed on the benefit of ITC which had accrued to him, by commensurate reduction in the price of the flat, after implementation of GST w.e.f. 01.07.2017 and charged GST on the full amount of instalments. The DGAP concluded that the Respondent has contravened the provisions of Section 171 of the Act in as much as the additional benefit of ITC of the base price received by the Respondent during the period between 01.07.2017 to 31.08.2018, 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 pass on the benefit of the profiteered amount to the Applicant and other buyers along with interest under Rule 133 and directed to reduce the prices of flats. Further held that the Respondent has denied the benefit of ITC to the buyers of the flats in contravention of the provisions of Section 171 (1) of the Act and has thus profiteered, therefore, liable for imposition of penalty.—Amarjeet Singh Yadav, Director General of Anti-Profiteering, Central Board of Indirect Taxes & Customs Vs Radicon Infrastructure & Housing Private Limited [2020] 25 TAXLOK.COM 050 (NAPA)