Section 171 of the CGST Act, 2017— Anti- Profiteering – The DGAP submitted its report after a detailed investigation under Rule 129. The DGAP reported that the benefit of additional ITC of 4.81 % of the turnover had accrued to the Respondent for the project “Heritage max”. This benefit was required to be passed on to the recipients but this was not done, as such provisions of Section 171 were violated. The Authority observed that the respondent has committed an offence for violation of the provisions of Section 171 (1) during the period from 01.07.2017 to 30.06.2019 and therefore, appears to be liable for imposition of penalty under the provisions of Section 171 (3A) Since the provisions of Section 171 (3A) have come into force w.e.f. 01.01.2020 whereas the period during which violation has occurred is prior to this, hence the penalty prescribed under the above Section cannot be imposed on Respondent retrospectively. 

Held that:- The Hon’ble Anti-Profiteering Authority held that Show Cause Notice directing him to explain why the penalty prescribed under Section 171 (3A) of the above Act read with Rule 133 (3) (d) should not be imposed on him is not required to be issued. The concerned jurisdictional CGST/SGST Commissioner is also directed to ensure compliance of this Order.