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Section 171 (3A) of the Act was not in operation during the period from 01.01.2019 to 30.06.2019 when the Respondent had committed the above violation and hence, the penalty prescribed under Section 171 (3A) of the Act cannot be imposed on the Respondent retrospectively.

Anti-Profiteering — Section 171 of the CGST Act, 2017— The DGAP submitted its report after a detailed investigation under Rule 129 (6). An application was filed against the Respondent alleging profiteering by the Respondent in respect of the supply of "Services by way of admission to exhibition of cinematograph films" despite the reduction in the rate of GST from 28% to 12% w.e.f. 01.01.2019. The DGAP concluded that the respondent has contravened the provisions of Section 171 (1) of the Act 2017 as any reduction in rate of tax on any supply of goods or services or the benefit of input tax credit has to be passed on to the recipient by way of commensurate reduction in prices. The total amount of profiteering covering the period from 01.01.2019 to 30.06.2019, was Rs. 5,31,625/-, thus, the respondent contravened the provisions of Section 171 of the Act.
Held that:- The Hon’ble Anti-Profiteering Authority held that the Respondent has contravened the provisions of Section 171 (1) and he has thus resorted to profiteering, during the period from 01.01.2019 to 30.06.2019. Therefore, liable for imposition of penalty under the provisions of the above Section. However, since, the penalty prescribed under Section 171 (3A) for violation of the above provisions has come in to force w.e.f. 01.01.2020 and the period involved is from 01.01.2019 to 06.01.2019, therefore, no penalty is imposed.—Principal Commissioner, Medchal Commissionerate, Director-General of Anti-Profiteering, Indirect Taxes & Customs Vs. Shiva Parvathi Theatre [2020] 28 TAXLOK.COM 018 (NAPA)