Delhi High Court stays Anti Profiteering Penalty proceedings against Samsonite South Asia

Delhi High Court: A Division Bench of Manmohan and Sanjeev Narula, JJ., stayed  the anti profiteering penalty proceedings against Samsonite South Asia Pvt. Ltd. till further orders.

The plaintiff had filed the petition, challenging the constitutionality and legality of the National Anti Profiteering Authority as well as Section 171 of the Central Goods and Services Tax Act and Rule 126 of the Central Goods and Services Tax Rules. The petitioner claimed breach of principle of natural justice because of absence of any methodology of the entire proceedings before the NAA. The petitioner also sought that it be allowed to deposit profiteered amount in instalments, in light of COVID-19 pandemic.

The plaintiff was represented by Rohan Shah, Advocate with Alok Yadav and Srisabari, Advocates. The respondents were represented by  Asheesh Jain, Advocate with Adarsh Kumar Gupta, Advocate and others.

The respondents objected the grant of instalments to the petitioner, but the court keeping in view the COVID-19 pandemic situation, directed the petitioner to deposit the principal profiteered amount i.e. Rs 21,81,20,748, in six equated monthly instalments. The interest amount and penalty proceeding were stayed by the Court. The court directed both the parties to file brief written submissions, while issuing notice to Central Government.

The matter will be taken up next on 24-08-2020, when the Court will be hearing 35 other similar matters.[Samsonite South Asia (P) Ltd v. Union Of India, 2020 SCC OnLine Del 794 , decided on 20-07-2020]

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