The penalty prescribed under Section 171 (3A) cannot be imposed on the Respondent retrospectively. Accordingly, the notice issued to the Respondent for imposition of penalty under Section 177 (3A) is hereby withdrawn
Section 171 of the CGST Act, 2017— Anti- Profiteering – The DGAP submitted that after investigation on the complaint of the Applicant and found that the Respondent had not passed on the benefit of additional ITC to the Applicant who had purchased Flat in his Project “Navkar Darshan”, as per the provisions of Section 171 (1) of the Act, 2017. The Respondent had denied the benefit of ITC to the Applicant and other buyers amounting to Rs. 5,83,593/-, pertaining to the period w.e.f. 01.07.2017 to 31.12.2018 and had thus indulged in profiteering and violation of the provisions of Section 171 (1) of the above Act. The Respondent submitted that he had returned the amount with interest to all the concerned customers as per Para No. 18 of the order. Further, it was his first project under the GST and he had very less knowledge about the GST and he has requested to waive off the penalty amount. The authority observed that since, no penalty provisions were in existence between the period w.e.f. 01.07.2017 to 31.12.2018 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.
Held that:- The Hon’ble Anti-Profiteering Authority directed that the notice dated 15.01.2020 issued to the Respondent for imposition of penalty under Section 177 (3A) is withdrawn and the present penalty proceedings launched against him are dropped.