GST Appellate Tribunal, New Delhi
DGAP, DG Anti Profiteering, Director General Of Anti-Profiteering v. Bengal Emami Housing Ltd
The ruling in brief
Additional ITC benefit under GST was required to be passed on by commensurate price reduction; as LIG/MIG flat prices were statutorily capped to direct costs, profiteering was to be confined to HIGflats, excluding post-OC/unsold units, without cross-buyer set-off
In anti-profiteering proceedings, amounts not passed on as commensurate price reduction under Section 171 were liable to be refunded with compensatory interest under Rule 133(3)(b); accordingly, respondent was directed to pay interest at 18% p.a. from respective dates of collection till actual refund, there being no special reason to deviate.
As part of anti-profiteering period extended beyond 1-1-2020, penalty under applicable provision was attracted; accordingly, penalty equal to 10% of profiteered amount was leviable, but stood waived if entire profiteered amount was passed on within 30 days from date of order, as prescribed by statutory proviso
Provisions considered
Section 171, read with section 7, of Central Goods and Services Tax Act, 2017/West Bengal Goods and Services Tax Act, 2017 - Rule 126, read with rule 133, of Central Goods and Services Tax Rules, 2017/West Bengal Goods and Services Tax Rules, 2017; Section 171 of Central Goods and Services Tax Act, 2017/West Bengal Goods and Services Tax Act, 2017 - Rule 133 of Central Goods and Services Tax Rules, 2017/West Bengal Goods and Services Tax Rules, 2017; Section 171, read with section 171(3A), of Central Goods and Services Tax Act, 2017/West Bengal Goods and Services Tax Act, 2017
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