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TMI Blog2020 (12) TMI 1040X X X X Extracts X X X X X X X X Extracts X X X X ..... dent upon the introduction of GST. The DGAP has reported that the Respondent had obtained the Commencement Certificate (CC) for the project Golf Meadows Godrej City, Panvel (Phase-II) on 07.09.2018 and for the project EWS on 11.05.2018. The DGAP has also verified that the project Golf Meadows Godrej City, Panvel (Phase-II) was registered on 11.10.2018 by Maharashtra RERA and the first booking in the above project was made on 02.11.2018. The DGAP has further observed that the project EWS was not registered under Maharashtra RERA and the Respondent had not sold any EWS unit as of 31.12.2019. The DGAP has further found that the projects Golf Meadows Godrej City, Panvel (Phase-Il) and EWS had been launched in the post-GST regime ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax (CGST) Rules, 2017. The brief facts of the present case are that the DGAP vide order No. 78/2019 dated 24.12.2019 = 2019 (12) TMI 1159 - NATIONAL ANTI-PROFITEERING AUTHORITY passed by this Authority in the matter of M/s Caroa Properties LLP versus Potnoor Naveen was directed under rule 133 (5) of the Central Goods and Services Tax Rules, 2017 to conduct investigation to find out whether the Respondent had availed the benefit of Input Tax Credit (ITC) which was required to be passed on to the eligible recipients as per the provisions of section 171 (1) of the Central Goods Service Tax (CGST) Act, 2017 in respect of two others projects namely Golf meadows Godrej City Phase II and EWS . 2. The DGAP has reported that accordin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate for the Economically Weaker Section (EWS) building. c. RERA registration for the project Golf Meadows Godrej City, Panvel d. First Booking details of the project Golf Meadows Godrej City, Panvel (including Builder Buyer Agreement). e. Copy of Declaration made in Annexure-IV to the Notification No. 03/2019-Central Tax (Rate) dated 29.03.2019. 5. The DGAP after examining the above application, various replies of the Respondent and the documents/evidence on record has stated that the main issues for determination were whether there were benefits of reduction in the rate of tax or ITC on the supply of construction service by the Respondent after implementation of the GST w.e.f. 01.07.2017 and if so, whether the Respon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny profiteering by the Respondent or not. 7. The DGAP has reported that the Respondent had availed CENVAT Credit of Service Tax during the period 01.04.2016 to 30.06.2017 (Pre-GST) specific to Godrej City Panvel Phase-1 and had apportioned the Common Credit among all the phases, EWS and commercial project (including projects not launched yet). The DGAP has examined the issue of passing on the benefit of reduction in the rate of tax from 12% to 8% (after Land abatement) vide Notification no. 01/2018 Central Tax-Rate dated 25.01.2018 w.e.f. 25.01.2018 and observed that the above Notification was not applicable to the above projects of the Respondent since these were other than affordable projects. Further, the Respondent had made the first ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment with the DGAP's Report dated 08.06.2020. He also submitted before this Authority that the Respondent had not passed the ITC benefit to him and other flat buyers in compliance with this Authority's earlier order No. 78/2019 dated 24.12.2019 = 2019 (12) TMI 1159 - NATIONAL ANTI-PROFITEERING AUTHORITY . He has also attached the statement of accounts as evidence of not having received the benefit as yet. 11. This Authority has carefully examined the DGAP's Report and various submissions placed on record. The issues to be decided by the Authority are as under:- 1) Whether there was any violation of the provisions of Section 171 of the CGST Act, 2017 in this case? 2) If yes, then what was the quantum of profiteer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e above project was made on 02.11.2018. The DGAP has further observed that the project EWS was not registered under Maharashtra RERA and the Respondent had not sold any EWS unit as of 31.12.2019. The DGAP has further found that the projects Golf Meadows Godrej City, Panvel (Phase-Il) and EWS had been launched in the post-GST regime and there was no price history of the units sold in the pre-GST regime that could be compared with the post-GST base prices to establish whether there was any profiteering by the Respondent or not. In terms of the provisions of the RERA Act, bookings in the project could not happen till the registration was obtained. Since the registration was obtained for the subject projects post the introduction of Goods ..... X X X X Extracts X X X X X X X X Extracts X X X X
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