2020 (7) TMI 610 - HC - GST

Imposition of penalty - Profiteering - HELD THAT - The petitioner to deposit ₹ 63,14,901/- in this Court, within two weeks, as sought. The amount once deposited, to be kept in maximum interest bearing account awaiting the adjudication of the petition - Subject to the said deposit, the operation of the impugned order dated 19th March, 2020 is stayed. List on on 24th August, 2020.

Summary

Issues involved:
1. Challenge to the order of the National Anti-Profiteering Authority assessing a profiteered amount and directing issuance of a show cause notice for penalty.
2. Stay on the operation of the impugned order.
3. Stay on the issuance of the show cause notice and further proceedings.
4. Pending petitions with similar issues in the court.

Detailed Analysis:
1. The petition challenged the order of the National Anti-Profiteering Authority dated 19th March, 2020, assessing a profiteered amount of ?63,14,901 against the petitioner for the period from 15th November, 2017 to 31st March, 2019. The court heard the counsels for the petitioner and respondents and issued notice. The petitioner was directed to deposit the profiteered amount in court within two weeks, to be kept in an interest-bearing account pending adjudication. The operation of the impugned order was stayed subject to the deposit. As the profiteered amount pertained to a period before the provision regarding penalty in the Central Goods & Services Tax Act, 2017, the issuance of the show cause notice and any further proceedings were also stayed.

2. The court disposed of the application for interim relief, staying the operation of the impugned order and any related penalty proceedings. The petitioner was required to deposit the profiteered amount in court within a specified time frame, with the amount to be held in an interest-bearing account until the case was adjudicated. This stay was contingent upon the deposit being made by the petitioner.

3. The court noted that there were numerous similar petitions pending before it, with 33 such matters identified in a previous order. These cases were scheduled for a hearing on a specified date. The petitioner had also filed another writ petition challenging the legal provisions under which the assessment was conducted. This petition was initially listed for a later date but was subsequently tagged with the group of petitions set for a hearing. Deadlines were set for filing counter affidavits and rejoinders, with a specific date fixed for the next hearing along with the related petitions.

4. The court acknowledged the existence of multiple petitions raising similar issues and consolidated the hearing of these cases for efficiency. The proceedings were managed to ensure a systematic and organized approach to addressing the legal challenges brought before the court. This approach aimed to streamline the adjudication process and provide a comprehensive resolution to the issues raised by the petitioners.