Section 171 of the CGST Act, 2017— Anti- Profiteering – The DGAP submitted its report and concluded that the benefit of additional ITC to the tune of 5.40% of the turnover, has accrued to the Respondent post-GST and the same was required to be passed on by him. The Respondent was required to pass on the additional benefit of ITC amounting to Rs. 1,76,36,697/-. The provisions of Section 171 (1) of the Act, have been contravened by the Respondent. The Authority found no reason to differ from the detailed computation of profiteering in the DGAP's Report or the methodology adopted.

Held that:- The Hon’ble Anti-Profiteering Authority directed the amount of Rs. 1,78,32,984/- (including 12% GST) has been profiteered by the Respondent, shall be refunded by him, along with interest @18% thereon, in accordance with the provisions of Rule 133 (3) (b) of the Rules. 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 w.e.f. 01.07.2017 to 34.09.2019, hence the penalty prescribed under the above Section cannot be imposed on Respondent retrospectively for the impugned period.