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Since the provisions of Section 171 (3A) have come in to force w.e.f. 01.01.2020 whereas the period during which violation has occurred is w.e.f. 01.07.2017 to 31.12.2018, hence the penalty prescribed under the above Section 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 additional ITC of 10.25% of the turnover which had accrued to the Respondent was required to be passed on and thus, the provisions of Section 171 of the CGST Act, 2017 had been contravened by the Respondent inasmuch as the additional benefit of ITC @10.25% of the basic price received by the Respondent during the period from 01.07,2017 to 31.12.2018 had not been passed on to the Applicants and other recipients. The Respondent had realized an additional amount of Rs.4,32,315/- (including GST). The Respondent had also profiteered an amount of Rs.6,20,15,693/- including the GST from 805 other recipients who were not applicants in the present proceedings. Therefore, this additional amount of Rs.6,20,15,693/- was required to be returned to such eligible recipients. Held that:- The Hon’ble Anti-Profiteering Authority held that the Respondent has committed an offence under Section 171 (3A). Since the provisions of Section 171 (3A) have come in to force w.e.f. 01.01.2020, hence the penalty prescribed under the above Section cannot be imposed on the Respondent retrospectively. Further held that the Respondent is liable to pass on the benefit of ITC on his two other Phases also. Accordingly, directed the DGAP to investigate the above two Phases of the project as per the provisions of Rule 133 (5) of the CGST Rules, 2017 read with Section 171 (2).