Delhi High Court defers hearing in petitions against NAA to December 7

50 petitions pending in court, court asks each petitioner to submit its arguments within five pages

The Delhi high court has deferred the date of hearing in a much-awaited case against national anti-profiteering authority (NAA) to December 7 from November 3. 

Around 50 petitions including those by major companies such as Hindustan Unilever, Patanjali, Jubilant Foodworks, Reckitt Benckiser, Johnson & Johnson, Phillips and Subway are pending in the court. 

Given the number of petitions, the court directed each petitioner to file their submissions within five pages. The hearing in December will be held virtually, whereas it was to be held in person in November.

In the initial round of hearing, the court said it is apparent that there is no consensus between those who have challenged the authority and the Union government with regard to the issues to be framed. 

Abhishek Rastogi, who is counsel for a dozen petitioners applications in the case, said he had raised 48 issues, but the Union government said only 14 of them are substantial. 

 

In the initial round of hearing, it was specifically agreed that the initial arguments will be only on the constitutional aspect and thereafter the writ petitions will be argued based on specific facts, he said. 

Among various issues, constitutional validity of the Authority has been challenged under the section 171 of the CGST Act and rules 126, 127 and 133 of the Act. 

The section 171 deals with the constitution of the Authority. The rule 126, 127 and 133 deals with other aspects such as duties of the Authority such as determining the methodology and procedure for determination of profiteering, whether to pass an order relating to reduction in prices  etc. 

The Authority was set up in November 2017 to ensure that companies pass on the benefits of input tax credit (ITC) and GST reduction to consumers by way of reduction in prices.