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Since the penalty prescribed under Section 171(3A) of the CGST Act, 2017 has come in to force w.e.f. 01.01.2020 and the infringement pertains to the period from 01.01.2019 to 06.01.2019 and the Respondent has also deposited the profiteered amount alongwith the interest therefore, no penalty is proposed to be imposed on the Respondent.

Anti-Profiteering — Section 171 of the CGST Act, 2017— The DGAP conducted investigation in respect of an application alleging profiteering by the Respondent in respect of supply of “Services by way of admission to exhibition of cinematograph films” despite reduction in the rate of GST from 28% to 18% w.e.f. 01.01.2019. The Applicant alleged that the Respondent had sold tickets of value of Rs.250/-, Rs.200/- Rs.150/- at the same prices prior to and after the GST rate reduction vide Notification No. 27/2018-Central Tax (Rate) dated 31.12.2018 and not passed on the benefit of reduction in the GST rate. The DGAP concluded that the Respondent had not reduced the selling prices commensurately, hence, has profiteered, which he deposited along with interest in accordance with the provisions of Section 171 of the Act, 2017 read with Rule 133.
Held that:- The Hon’ble Anti-Profiteering Authority determined the profiteered amount and held that the Respondent has reduced his prices commensurately w.e.f. 07.01.2019 therefore, no further direction is required to be passed and he has deposited the amount along with interest. The Respondent has contravened the provisions of Section 171 (1). Since, the penalty prescribed under Section 171(3A) has come in to force w.e.f. 01.01.2020 and the infringement pertains to the period from 01.01.2019 to 06.01.2019 and the Respondent has also deposited the profiteered amount alongwith the interest therefore, no penalty is proposed to be imposed on the Respondent.—M. Srinivas, Director General of Anti-Profiteering. Central Board of Indirect Taxes & Customs Vs. PVR Ltd. [2020] 27 TAXLOK.COM 070 (NAPA)