2020 (8) TMI 53 - HC - GST

Profiteering - principles of natural justice - time limitation - HELD THAT - List the matter on 24th August, 2020 along with other connected matters. Application disposed off.

Summary

Issues:
Challenge to jurisdiction and violation of natural justice in anti-profiteering proceedings.

Analysis:
The petition challenged an order by the National Anti-Profiteering Authority dated 19th March, 2020, seeking to set aside consequential directions. The petitioner argued that the proceedings were without jurisdiction, citing a limitation prescribed under Rule 128(i) of the Central Goods and Services Tax Rules 2017. The petitioner claimed violation of natural justice as the second complaint forming the basis of the investigation was not provided. It was highlighted that the DGAP report only referenced the first complaint, not the second one.

Analysis:
The petitioner contended that they had passed on commensurate price reductions to recipients through a grammage increase. Reference was made to a case where grammage increase was accepted as a legitimate method to pass on price reductions post GST rate reduction. Additionally, mention was made of a previous order by a coordinate Bench of the Court involving a similar manufacturer. The Court issued notice to the respondents, with their counsels accepting notice and given time to file counter-affidavits.

Analysis:
The Court directed the petitioner to deposit the principal profiteered sum within two weeks, with further proceedings stayed upon deposit. The matter was listed for a future date along with related cases. The order was to be uploaded on the website and forwarded to the counsels via email. An application by one of the respondents for marking attendance in the order was allowed, leading to the modification of the order dated 28th July, 2020.