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2025 (1) TMI 776

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..... roject, the accrual of Input Tax Credit is not related to the amount collected from the buyers. This Court is in agreement with learned counsel of the petitioners that one needs to calculate the total savings on account of introduction of Goods and Services and Tax for each project and then divide the same by total area to arrive at the per square feet benefit to be passed on to each flat buyer. This would ensure that flat-buyers with equal square feet area received equal benefit. The impugned orders passed by the National Anti-profiteering Authority are quashed and set aside, so as to enable the Competition Commission of India to pass appropriate order in accordance with law. Petitions are accordingly disposed off.
HONOURABLE MR. JUSTIC .....

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..... aid Judgment and Order has held that the methodology adopted by National Anti-Profiteering Authority (NAA) which is now Competition Commission of India and Director General of Anti Profiteering (DGAP) to arrive at the profiteering amount of the real estate industry was generally based on the difference between the ratio of Input Tax Credit to turnover under the pre-Goods and Services and Tax and post-Goods and Services and Tax period and such methodology adopted by NAA is flawed as in the real estate sector, there is no direct correlation between the turn-over and the Input Tax Credit availed for a particular period. 4. It was further pointed out that the Hon'ble Delhi High Court in the aforesaid decision has remanded the matter back to th .....

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..... f Input Tax Credit is not related to the amount collected from the buyers. This Court is in agreement with learned counsel of the petitioners that one needs to calculate the total savings on account of introduction of Goods and Services and Tax for each project and then divide the same by total area to arrive at the per square feet benefit to be passed on to each flat buyer. This would ensure that flat-buyers with equal square feet area received equal benefit. The Court, while hearing the present batch of matters on merits, shall take the aforesaid direction/interpretation into account." 7. In view of the aforesaid submissions made by the learned advocates for both the sides, these two petitions are also remanded back to the Competition C .....

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