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Since, no penalty provisions were in existence when the Respondent had violated the provisions of Section 171 (1), the penalty prescribed under Section 171 (3A) can not be imposed on the Respondent retrospectively.

Anti-profiteering— The brief facts of the present case are that the Applicant vide his Report furnished to this Authority under Rule 129 (6) of the Central Goods & Services Tax (CGST) Rules, 2017, had submitted that he had conducted an investigation on the complaint of the Applicant No. 1 and found that the Respondent had not passed on the benefit of reduction in the rate of tax of IGST to his recipients on the purchase of two items "Lava CNC 240 Milling Machine along with accessories" and "Sintering Furnace D664 from the Respondent based on quotation dated 28.11.2016 having taxable valued of Rs. 60,24,120/-. Vide his above Report the DGAP had also submitted that the Respondent had denied the benefit of tax rate reduction to his recipients amounting to Rs. 4,78,085/- and had thus indulged in profiteering and violation of the provisions of Section 171 (1) of the above Act. the submissions of the Respondent and all the material placed before us and it has been revealed that the Respondent has not passed on the benefit of reduction in IGST rate on the above products and hence, the Respondent has violated the provisions of Section 171 (1) of the CGST Act, 2017. Held that— Since, no penalty provisions were in existence when the Respondent had violated the provisions of Section 171 (1), the penalty prescribed under Section 171 (3A) can not be imposed on the Respondent retrospectively. Accordingly, the notice dated 06.12.2018 issued to the Respondent for imposition of penalty under Section 122 (1) (i) is hereby withdrawn and the present penalty proceedings launched against him are accordingly dropped.
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