HC stays Anti-Profiteering Investigation and Penalty against Phillips India Ltd. (Read Order)

Delhi High Court has stayed the anti-profiteering investigation initiated against Philips India Limited by the Director General of Anti-Profiteering.

Petitioner Phillips India Limited has instituted a writ petition against the order dated 19.05.2020 passed by the National Anti-Profiteering Authority under the Central Goods and Services Tax 2107, whereby it was held that the Petitioner has violated the provisions of Section 171 of CGST which has lead to profiteer them from the sale of their ‘food processor’ product. Petitioner however instituted a writ petition of prohibition to prevent the authority from initiating any sort of investigations against the offer products of the petitioner company and also pleaded to set aside the order dated June 11.

It is the case of the respondent; National Anti-Profiteering Authority of India that it passed an order against Philips India Limited for not adhering to the provisions of Section 171 of the Central and Goods Services Tax Act 2017 and thus, alleged the petitioners of profiteering from the sale of their ‘food processor’ product. It was further directed to the Petitioner to reduce the price of the 'food processor' and to also deposit the profiteered amount gained by the petitioner by wrongful means amounting to Rs. 4,53,949/- within the stipulated time frame of three months along with the rate of interest of 18% that will be levied upon from the date of collection of amount from the recipients till the date of deposit.

The court for the time being stayed on the order which authorized the National Anti- Profiteering to initiate investigations against the Petitioner Company and thus provided with interim relief to the Petitioners. The matter is further listed for hearing on September 7, until then there is stay order to any investigation being conducted against the Petitioner Company.

Case Details

Before: Delhi High Court

Quorum:  Hon’ble Mr. Justice Manmohan and Hon’ble Mr. Justice Sanjeev Narula

Case Title: Phillips India Limited v. Union of India

Case No. W.P.(C) 3737/2020

Date of Decision: 25.06.2020

Read Order @LatestLaws.com