Section 171 of the CGST Act, 2017— Anti- Profiteering – The DGAP submitted its report and concluded that the benefit of additional ITC of 3.86% of the total amount demanded by the Respondent from the home buyers who made bookings on or before 30.09.2019, has accrued to the Respondent and the same was required to be passed on to them. The Respondent was required to pass on the benefit of ITC to the tune of Rs. 7,90,97,474/-. However, he had actually passed on an amount of Rs. 8,28,91,520/-. The authority in its earlier order directed the DGAP to re investigate the matter and verify the passage of ITC. The DGAP reported that the necessary verification in respect of only 31 home buyers out of 452 could be done. However, in respect of remaining 421 home buyers’ necessary verification could not be completed. The authority observed that the Respondent has gained the benefit of ITC and was required to pass on such benefit. However, the benefit was not commensurately passed on by the Respondent to his recipients. The Authority agrees with verification report of the DGAP. The Respondent was unable to provide the requisite evidence which was directed.

Held that:- The Hon’ble Anti-Profiteering Authority directed the amount the profiteering amount along with the interest @ 18% shall be paid/passed on by the Respondent within a period of 3 months. However, since the provisions of Section 171 (3A) have come into force w.e.f 01.01.2020 and hence, was not in force during the period of investigation i.e. from 01.07.2017 to 30.09.2019, when the Respondent had committed the above violation and hence the penalty prescribed under Section 171 (3A) cannot be imposed on the Respondent retrospectively.