GST: NAA finds Fusion Buildtech guilty of profiteering to the tune of Rs.4.76 Crores, no penalty imposed [Read Order]

The National Anti-Profiteering Authority (NAA) found Fusion Buildtech guilty of profiteering to the tune of Rs.4.76 Crores.

The application was filed alleging that the Respondent,  Fusion Buildtech had not passed on the benefit of additional Input tax Credit (ITC) to the above Applicant who had purchased a Flat in his Project “Fusion Homes”, as per the provisions of Section 171 (1) of the CGST Act, 2017.

The DGAP reported that the Respondent had denied the benefit of ITC to the above Applicant and other buyers amounting to Rs. 4,79,04,342, pertaining to the period with effect from July 1, 2017 to October 30, 2018 and had thus indulged in profiteering and violation of the provisions of Section 171 (1) of the above Act.

The NAA headed by the Chairman Dr. B.N. Shrama held that the Respondent had not passed on the benefit of additional Input tax Credit (ITC) to the above Applicant as well as other homebuyers in his Project “Fusion Homes”.

However, the Authority abstained from imposing penalty on the grounds that no penalty provisions were in existence when the Respondent had violated the provisions of Section 171 (1), so the penalty prescribed under Section 171 (3A) cannot be imposed on the Respondent retrospectively.