2023 (8) TMI 235 - CCI - GST

Profiteering - projects other than the project SKA Green Arch being constructed by the Respondent under single GST Registration - whether the Respondent was liable to pass on the benefit of ITC in respect of all the other Projects/Blocks to the buyers, or not, as per the provisions of Section 171 (1) of the CGST Act, 2017? - HELD THAT - The Respondent is executing a single project namely SKA Green Arch under GSTIN 09AAGCP220N1ZW. The above project is being executed by the Respondent in two Phases i.e. in the first phase, there are two towers namely, Aster and Orchid and in the second phase, there are two towers namely, Tulip and Zinnia. For both the phases under the SKA Green Arch project, the Respondent has taken a single RERA Registration No. i.e. UPRERAPRJ3377 registered with Uttar Pradesh Real Estate Regulatory Authority (UP RERA). The NAA vide its Order No. 72/2022 dated 13.09.2022 has already determined profiteered amount of Rs. 4,75,87,468/- in respect of the above two phases of the project SKA Green Arch . It is also observed by the Commission that the Respondent is not executing any other project other than the project SKA Green Arch under the same GSTIN 09AAGCP220N1ZW and the same has been verified by the DGAP by visiting the website of UP RERA. From the website of UP RERA, it has been observed that the Respondent has obtained single registration of two phases of the project SKA Green Arch and no other project than the above project is being executed by him under the above GSTIN - The Deputy Commissioner of State Tax, U.P. vide his letter dated 01.03.2023 had informed that the Respondent had not executed any project other than the project SKA Green Arch . Thus, the instant case does not fall under the ambit of Anti-Profiteering provisions of Section 171 of the CGST Act, 2017 as the Respondent is not executing any project other than the project SKA Green Arch which has already been investigated and profiteered amount has also been determined - the proceedings initiated against the Respondent under Rule 133 (5) of the CGST Rules, 2017 are hereby dropped.

Summary

Issues involved:
The issues involved in this case are related to the investigation conducted by the Competition Commission of India (CCI) based on the Report received from the Director General of Anti-Profiteering regarding profiteering in projects executed by the Respondent under a single GST Registration No.

Summary:

Investigation and Direction by NAA:
The National Anti-Profiteering Authority (NAA) directed the Director General of Anti-Profiteering (DGAP) to investigate profiteering in projects other than "SKA Green Arch" and submit a report to determine if the benefit of Input Tax Credit (ITC) was passed on to buyers as per Section 171 (1) of the CGST Act, 2017.

DGAP's Findings and Actions:
The DGAP's investigation revealed that the Respondent had realized an additional amount from home buyers during a specific period. The NAA directed further investigation into other projects executed by the Respondent under the same GST Registration. The Respondent denied undertaking any other project besides "SKA Green Arch," which was verified through UP RERA records and jurisdictional Commissionerate.

Commission's Examination and Decision:
The CCI examined the DGAP's report and confirmed that the Respondent was only executing the "SKA Green Arch" project under a single GSTIN. It was verified that no other projects were being undertaken by the Respondent. Based on these findings, the Commission concluded that the case did not fall under the Anti-Profiteering provisions of Section 171 of the CGST Act, 2017. Consequently, the proceedings initiated against the Respondent were dropped.

Conclusion:
The Commission's decision was based on the clear evidence that the Respondent was solely engaged in the "SKA Green Arch" project and had not undertaken any other projects. The investigation and verification process confirmed the Respondent's claim, leading to the dismissal of the proceedings under Rule 133 (5) of the CGST Rules, 2017.