Section 171 of the CGST Act, 2017— Anti- Profiteering – The DGAP submitted its report and concluded that the additional ITC of 0.91% of the taxable turnover should had resulted in the commensurate reduction in the base price as well as cum-tax price. Therefore, in terms of Section 171, the benefit of such additional ITC was required to be passed on by the Respondent to the respective recipients. The Authority observed that the Respondent has profiteered by Rs. 50,09,158/- during the period of investigation i.e. 01.07.2017 to 31.10.2019. The above amount that has been profiteered by the Respondent from his home buyers/customers/recipients of supply in the above said Project shall be refunded by him, along with interest @18% thereon.

Held that:- The Hon’ble Anti-Profiteering Authority directed the Respondent to   pass on the profiteered amount along with the interest @ 18% per annum, within a period of 3 months. However, since the provisions of Section 171 (3A) have come into force w.e.f 01.01.2020 and the period of violation has occurred is w.e.f. 27.07.2018 to 30.09.2018, hence the penalty prescribed under the above Section cannot be imposed on Respondent retrospectively. Accordingly, Show Cause Notice directing him to explain why the penalty prescribed under Section 171 (3A) read with Rule 133 (3) (d) should not be imposed on him is not required to be issued.