The Delhi High Court on Tuesday stayed an order by the National Anti-Profiteering Authority (NAA) against realty firm Pyramid Infratech. The authority had directed the company to refund or reduce Rs 82.2 million from 2,476 buyers’ last installment for not passing the benefit of input tax credit (ITC) to them.
The authority had also asked the company to pay interest of 18 per cent per annum to be calculated from the date of receipt of the excess amount from each buyer, within three months.
The company had instead offered to pay Rs 51.1 million to the authority to buy peace. The court asked the company to pay the amount, pending the final ruling.
The authority had passed the order in September on a complaint of profiteering filed by 109 home buyers of two affordable housing projects of Pyramid Infratech in Gurugram. However, the authority had extended the benefit to all 2,476 buyers.
The home buyers in their complaint had said Pyramid Infratech had not passed on the benefit of lower tax arising out of availing of the ITC post-GST and hence had indulged in profiteering.
In a petition to the high court, Abhishek Rastogi, counsel for the company and partner at Khaitan & Co., said the project was time-linked and not construction-linked. "The court while granting stay, acknowledged that the ratios used in the order need to be examined,” Rastogi said.