Section 171 of the CGST Act, 2017 — Anti Profiteering –-- The petitioner challenged a notice/summon dt.06-03-2020 and a prior notice dt.22-10-2019. The petitioner is the proprietor of a movie theatre and paying GST at 18% for tickets upto Rs. 100/- and 28% for tickets costing above Rs. 100/-. Thereafter from 01-01-2019, there was a reduction in the rate of tax from 18% to 12%, and in regard to tickets above Rs. 100/-, tax was reduced from 28% to 18%. The respondent issued the notice dt.06-03-2020 on the ground that there is prima facie evidence of profiteering amounting to Rs. 7,19,187/- under Section 171. Interim stay was granted of all further proceedings pursuant to notice/summon dt.06.03.2020 issued by 2nd respondent, pending disposal of the Petition and the said order was extended from time to time. The Counsel for respondent submitted that there is no threat of any measures such as arrest of petitioner.

Held that:- The Hon’ble High Court directed the petitioner to submit explanation to the notice dt.06-03-2020 to the 4th respondent within four weeks. The respondent is directed to consider the explanation submitted by petitioner and pass a reasoned order in accordance with law.