Section 171 of the CGST Act, 2017— Anti- Profiteering – The DGAP submitted its report and concluded that the additional ITC of 6.33% of the taxable turnover should have resulted in commensurate reduction in the base price as well as cum-tax price. Therefore, in terms of Section 171 of the Act, The authority observed that the benefit of the additional ITC was required to be passed on to the recipients. The Respondent has profiteered by an amount of Rs.4,52,79,754/- and shall be refunded by him, along with interest @18%, in accordance with the provisions of Rule 133 (3) (b) of the Rules.

Held that:- The Hon’ble Anti-Profiteering Authority directed the amount the profiteering amount of Rs. 4,52,79,754/- along with the interest @ 18% shall be paid/passed on by the Respondent within a period of 3 months. The respondent has committed an offence under Section 171 (3A) and therefore, he is liable for imposition of penalty under the provisions of the above Section. However, since the provisions of Section 171 (3A) have come into force w.e.f 01.01.2020 whereas the period during which violation has occurred is from July-2017 to July-2020, therefore, he is liable for imposition of penalty under the provisions of the above Section and notice be issued to him.