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Since the Respondent has paid the entire profiteered amount along with interest @ 18% thus, he is apparently not liable for imposition of penalty under the provisions of Section 171 (3A) of the CGST Act, 2017.

Anti-Profiteering — Section 171 of the CGST Act, 2017— The report has been received from the DGAP. The applicant alleged profiteering by the Respondent in respect of the supply of “Duracell Battery AA/6”. The Applicant alleged that the Respondent did not reduce the selling price of the product when the GST rate was reduced from 28% to 18% w.e.f. 15.11.2017, vide Notification No.41/2017-CT (Rate) dated 14.11.2017 and the price of the product remained the same and thus the benefit of reduction in GST rate was not passed on to the recipients by way of commensurate reduction in the price, in terms of Section 171 of the Act. The DGAP submitted that the Respondent had increased the base price of the product when the rate of GST was reduced from 28% to 18% w.e.f. 15.11.2017 and the profiteered amount comes to Rs.1,57,200/-.
Held that:- The Hon’ble Anti-Profiteering Authority held that the Respondent has acted in contravention of the provisions of Section 171 of the Act, and has not passed on the benefit of reduction in the rate of tax. Further directed the Respondent to reduce the prices of his products and to deposit the profiteered amount of Rs.1,57,200/- along with the interest. Since the Respondent has paid the entire profiteered amount of Rs.1,57,200/- along with interest, he is not liable for imposition of penalty under the provisions of Section 171 (3A) of the Act.—D.S. Brothers, Director-General of Anti-Profiteering, Central Board of Indirect Taxes & Customs Vs. Durga Marketing Pvt. Ltd. [2020] 26 TAXLOK.COM 069 (NAPA)