Section 171 of the CGST Act, 2017— Anti- Profiteering – The DGAP submitted its report and concluded that allegation of profiteering by way of either increasing the base prices of the service while maintaining the same selling price or by way of not reducing the selling prices of the service commensurately, despite a reduction in GST rate on “Services by way of admission to exhibition of cinematograph films where price of admission ticket was above one hundred rupees” from 28% to 18% stands confirmed against the Respondent. The Respondent had realized an additional amount to the tune of Rs. 2,66.99,340/- from the recipients in respect of all the screens operated by the Respondent during the period 01.01,2019 to 29.02.2020. Provisions of Section 171 (1) of the Act had been contravened by the Respondent in the present case. The Authority observed that the Respondent has realized an additional amount to the tune of Rs. 2,66,99,340/- from the recipients.  

Held that:- The Hon’ble Anti-Profiteering Authority directed the Respondent to deposit the profiteered amount along with the interest to be calculated @ 18% from the date when the above amount was collected by him from the recipients. Since the recipients are not identifiable, the Respondent is directed to deposit the amount of profiteering in the Central/State Consumer Welfare Fund (CWF). The respondent is liable for the imposition of penalty. Accordingly, a notice be issued to him directing him to explain why the penalty prescribed under Section 171 (3A) of the Act read with Rule 133 (3) (d) of the CGST Rules, 2017 should not be imposed on him for the profiteered amount.