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The Respondent has denied benefit of ITC to the buyers of the flats being constructed by him in his above project in contravention of the provisions of Section 171 (1) of the CGST Act, 2017 and he has thus resorted to profiteering.

Anti-Profiteering — Section 171 of the CGST Act, 2017— This report has been received from the DGAP. The Applicants had alleged profiteering by the Respondent in respect of purchase of Flat in “Emerald Floors Select-A” project of the Respondent. The Applicants had alleged that the Respondent had not passed on the benefit of ITC by way of commensurate reduction in the prices of the above flats. The DGAP submitted that the benefit of additional ITC was required to be passed on to the Applicants and the other recipients. Thus, the Respondent has contravened the provisions of Section 171 of the Act, in as much as the additional benefit of ITC during the period from 01.07 2017 to 31.03.2019, has not been passed on to the above Applicants and the other recipients.
Held that:- The Hon’ble Anti-Profiteering Authority held that the Respondent shall reduce the prices of the flats, commensurate with the benefit of ITC received. The Respondent has denied benefit of ITC to the buyers in contravention of the provisions of Section 171 (1) of the Act and he has thus resorted to profiteering and liable for penalty under the provisions of the Act. Further directed the DGAP to investigate the issue of passing on the benefit of additional ITC in respect of the other projects of the respondent.—Puneet Bansal, Vanita Bansal, Director General of Anti-Profiteering, Central Board Of Indirect Taxes & Customs Vs Emaar MGF Land Ltd. [2020] 25 TAXLOK.COM 061 (NAPA)