Case Details: DGAP vs. Legacy Global Projects Pvt. Ltd. (2025) 35 Centax 132 (Tri.-GST-Delhi)
Judiciary and Counsel Details
- Justice Dr Sanjaya Kumar Mishra, President
Facts of the Case
A complaint was raised under Section 171 of the CGST Act regarding alleged profiteering in connection with the allotment of a flat. The facts reveal that the original complainant had booked a flat with the builder, but the allotment was subsequently cancelled, and the entire amount paid by the complainant was refunded. The builder submitted that the refund had been made in full and that there was no failure to pass on the benefit of input tax credit (ITC) or reduction in the rate of GST. The Karnataka State Screening Committee submitted a report clarifying that there was no case of profiteering. The matter was accordingly placed before the GST Appellate Tribunal (GSTAT).
GSTAT Held
The GSTAT held that this did not constitute profiteering, observing that the money paid by the complainant had been returned upon cancellation of the flat allotment. The Tribunal noted that while there may have been certain grievances of the complainant against the flat allotment process, these did not relate to the non-passing of ITC or the reduction in GST rate. It further directed that the matter be closed under Section 171 of the CGST Act.
