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Since the penalty prescribed under Section 171 (3A) of the CGST Act, 2017 for violation of the above provisions has come in to force w.e.f. 01.01.2020 and the infringement pertains to the period from 01.01.2019 to 06.01.2019 and the Respondent has also deposited the profiteered amount alongwith the interest therefore, no penalty is proposed to be imposed on the Respondent.

Anti-Profiteering — Section 171 of the CGST Act, 2017— The DGAP submitted its report after a detailed investigation under Rule 129 (6). An application was filed against the Respondent alleging profiteering in respect of supply of ‘Services by way of admission to exhibition of cinematography films where the price of admission ticket was above Rs. 100’ despite reduction in the rate of GST from 28% to 18% w.e.f. 01.01.2019. It was alleged that the Respondent was selling the movie tickets of value of Rs. 250/-, Rs. 200/- and Rs. 150/- at the same prices after the reduction in the rate of GST from 28% to 18%, vide Notification No.27/2018- CT (Rate) dated 31.12.2018 and instead had increased the base prices resulting in non passing on of the benefit of rate reduction. The DGAP concluded that the benefit of reduction in GST rate from 28% to 18% (w.e.f. 01.01.2019), was not passed on to the recipients by way of commensurate reduction in prices charged. The Respondent had collected excess amount of Rs. 4,20,731/- from his customers, thus, the respondent contravened the provisions of Section 171 of the Act. The Respondent had suo moto rectified his mistake and paid the entire amount due in the Consumer Welfare Funds, prior to initiation of present proceeding. Therefore, the profiteered amount is not ordered to be paid again.
Held that:- The Hon’ble Anti-Profiteering Authority held that the Respondent has contravened the provisions of Section 171 (1). However, since, the penalty prescribed under Section 171 (3A) for violation of the above provisions has come in to force w.e.f. 01.01.2020 and the infringement pertains to the period from 01.01.2019 to 06.01.2019 and the Respondent has also deposited the profiteered amount alongwith the interest therefore, no penalty is imposed.—Principal Commissioner, Central Tax & Central Excise, Hyderabad, Director-General of Anti-Profiteering, Indirect Taxes & Customs Vs. Inox Leisure Ltd. [2020] 28 TAXLOK.COM 017 (NAPA)