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Since no penalty provisions were in existence between the period w.e.f. 15.11.2017 to 31.03.2018 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.

Anti-Profiteering — Section 171 of the CGST Act, 2017— The applicant DGAP concluded that the Respondent had not passed on the benefit of reduction in the rate of GST from 18% to 12% in respect of the product ‘Maggi Noodles Pack having MRP Rs.5/- with effect from 15.11.2017, as per the provisions of Section 171 (1) of the Act. The Respondent had denied the benefit of tax rate reduction to the above buyers amounting to Rs.90,778/- pertaining to the period w.e.f. 15.11.2017 to 28.02.2018 and had thus indulged in profiteering and violation of the provisions of Section 171 (1) of the above Act. This Authority on 08.10.2018 had determined the profiteered amount as profiteered amount as Rs.90,778/- and also held the Respondent in violation of the provisions of Section 171 (1). The respondent submitted that penalty should only be imposed when there is mens rea and deliberate attempt to violate the provisions of law and as he has complied with this Authority's Order.
Held that:- The Hon’ble Anti-Profiteering Authority held that since no penalty provisions were in existence between the period w.e.f. 15.11.2017 to 31.03.2018 when the Respondent had violated the provisions of Section 171 (1), the penalty prescribed under Section 171 (3A) cannot be imposed retrospectively. Accordingly, the notice dated 10.10.2018 issued to the Respondent for imposition of penalty under Section 171 (3A) is hereby withdrawn.—Ankur Jain, Director General of Anti-Profiteering, Indirect Taxes & Customs Vs. Kunj Lub Marketing Pvt. Ltd. [2020] 27 TAXLOK.COM 073 (NAPA)

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