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The penalty prescribed under Section 171 (3A) cannot be imposed on the Respondent retrospectively.

Section 171 of the CGST Act, 2017— Anti- Profiteering – The DGAP vide Report submitted that the Respondent had increased the base price of the product from Rs. 155/- to Rs. 170/- when the rate of GST was reduced from 18% to 5%. The DGAP held that the respondent profiteered by way of increasing the base prices of the products, to more than offset the impact of denial of ITC, despite a reduction in the GST rate from 18% to 5% w.e.f. 15.11.2017. Hence, contravened the provisions of Section 171 (1). The total profiteered amount as computed by the DGAP was Rs. 1,04,70,664/- Held that:- The Hon’ble Anti-Profiteering Authority directed Respondent to deposit the profiteered amount into Central and State CWF alongwith 18% interest within three months. Since penalty provisions were not in operation during the period 15.11.2017 to 30.06.2018 when the Respondent had committed the violation and hence, the penalty prescribed under Section 171 (3A) cannot be imposed on the Respondent retrospectively. Accordingly, notice for imposition of penalty is not required to be issued to the Respondent.