Meenal Gupta Vs Kanakia Spaces Reality Pvt. Ltd

Respondents have denied benefit of ITC to the buyers of the flats/shops/units being constructed by them in the project ‘Kenakia Sevens’ In contravention of the provisions & Section 171 (1) of the CGST Act, 2017 and have committed an offence under Section 171 (3A) of the above Act. However, perusal of the provision of Section 171 (3A) under which  penalty has been prescribed for the above violation shoes that it has been Instated In the CGST Act, 2017 w.e.f. 01.01.2020 vide Section 112 of the Financial Act, 2019 And it was not in operation during the  period from 01.07.2017 to 31.03.2019 when the Respondents had committed the above violation and hence, the penalty prescribed under Section 171 (3A) cannot be imposed on the Respondents retrospectively Accordingly, note for  imposition of  penalty is not required to be issued In lite Respondents.