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Since, no penalty provisions were in existence between the period w.e.f. 01.07.2017 to 31.12.2018 when the Respondent had violated the provisions of Section 171 (1), the penalty prescribed under Section 171 (3A) cannot be imposed on the Respondent retrospectively.

Section 171 of the CGST Act, 2017— Anti- Profiteering – The DGAP vide Report submitted that the Respondent had not passed on the benefit of additional ITC to the Applicant and other home buyers who had purchased in his Project “Nirala Greenshire”, as per the provisions of Section 171 (1). Further, the Respondent had denied the benefit of ITC to amounting to Rs. 2,88,43,422/, for the period w.e.f. 01.07.2017 to 31.12.2018 and had thus indulged in profiteering and violation of the provisions of Section 171 (1) of the above Act. held that the Respondent had not passed on the benefit of ITC to the homebuyers and had profiteered the above amount between the period from 01.07.2017 to 31.12.2018 and therefore, he had apparently committed an offence under Section 171 (3A) of the CGST Act, 2017 and hence, he was liable for imposition of penalty under the provisions of the above Section. Held that:- The Hon’ble Anti-Profiteering Authority held that the Respondent has violated the provisions of Section 171 (1). Since, no penalty provisions were in existence between the period w.e.f. 01.07.2017 to 31.12.2018 when the Respondent had violated the provisions of Section 171 (1), the penalty prescribed under Section 171 (3A) cannot be imposed on the Respondent retrospectively. Accordingly, the notice dated 04.02.2020 issued to the Respondent for imposition of penalty under Section 171 (3A) is withdrawn.