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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 benefit of reduction in the GST rate was not passed on to the recipients by way of commensurate reduction in prices stood by the Respondent and thus, he contravened the provisions of Section 171 of the Act. The total amount of profiteering on account of contravention of the provisions of Section 171 of the Act, 2017 covering the period from 01.01.2019 to 30.06.2019 came out to Rs. 1,91,21,441/-. Held that:- The Hon’ble Anti-Profiteering Authority directed Respondent to reduce his prices commensurately and to deposit an amount of Rs. 1,91,21,441/- in two equal parts each in the Central and state CWF alongwith 18% interest within three months. Since penalty provisions were not in operation during the period from 01.01.2019 to 30.06.2019 when the Respondent had committed the violation and hence, the penalty prescribed under Section 171 (3A) cannot be imposed on the Respondent retrospectively. Accordingly, notice for imposition of penalty is not required to be issued to the Respondent.