Section 171 of the CGST Act, 2017— Anti- Profiteering – The DGAP submitted its report and concluded that the benefit of reduction in GST rate was not passed on to the recipients by way of commensurate reduction in prices by the Respondent No. 1 & 2. Thus, the total amount of profiteering covering the period 15.11.2017 to 30.09.2019 in respect of the Respondent No. 1 had been worked out as Rs.61,54,833/- and the profiteering amount in respect of the Respondent No. 2 for the period from 15.11.2017 to 30.09.2019 was Rs. 28,50,72,358/-. The authority observed that the amount profiteered by the Respondent No. 1 and No. 2 is Rs. 61,54,833/- and Rs. 28,50,72,358/- respectively. The amount profiteered by the Respondent No. 2 is inclusive of the amount profiteered by the Respondent No. 1. Hence, the Respondent No. 2 is liable to pass on the profiteered amount of Rs. 61,54,833/- to the Respondent No. 1 and thus, the Respondent No. 1 is liable to pass on this benefit of rate reduction due to the Applicant No. 1 and the remaining amount in the Central and concerned State Consumer Welfare Fund.

Held that:- The Hon’ble Anti-Profiteering Authority directed the Respondent No. 1 to pass on Rs. 38,267/- to the Applicant No. 1 alongwith applicable interest. Since the other recipients are not identifiable, the Respondent No. 1 is directed to deposit the balance amount of Rs. 61,16,566/- in two equal parts in the Central Consumer Welfare Fund and the concerned State Consumer Welfare Fund. However, since the provisions of Section 171 (3A) have come into force w.e.f 01.01.2020 and hence, was not in force during the period of investigation i.e. from 01.07.2017 to 30.09.2019, when the Respondent had committed the above violation and hence the penalty prescribed under Section 171 (3A) cannot be imposed on the Respondent retrospectively.