Penalty for Profiteering Charges can’t be imposed retrospectively – NAA

The Relevant Text of the Order as follows :

It is also revealed from the perusal of the CGST Act and the Rules framed under it that the Central Government vide Notification No. 01/2020 – Central Tax dated 01.01.2020 has implemented the provisions of the Finance (No.2) Act, 2019 from 01.01.2020 vide which sub-section 171 (3A) was added in section 171 of the CGST Act, 2017 and penalty was proposed to be imposed in the case of violation of Section 171(1) of the CGST Act, 2017.

Since no penalty provisions were in existence between the period w.e.f. 01.07.2017 to 30.03.2018 when the Respondent had violated the provisions of Section 171 (3A) cannot be imposed on the Respondent restrospectively. Accordingly, the notice dated 18.12.2019 issued to the Respondent for imposition of penalty under Section 171 (3A) is hereby withdrawn and the present penalty proceedings launched against him are accordingly dropped.

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