You are here: Home » Companies » News
Business Standard

Companies accuse anti-profiteering body of launching baseless probes

They say NAA is not following due process of law, harassing them with investigations even when there is no cut in GST rates or increase in input tax credit; Delhi HC posts matter for March 4

Companies | National Anti-profiteering Authority | Delhi High Court

Indivjal Dhasmana  |  New Delhi 

GST, retail, anti-profiteering norms
Earlier, the court had clubbed the petitions of over 50 companies including HUL, Abbott against NAA, Abhishek Rastogi, counsel for several petitioners said

on Monday told the that the (NAA) was not following due process of law and was even launching investigation against them when there was no cut in the goods and services tax (GST) rates or any increase in the

Arguments were also put forward challenging the constitutional validity of setting up the NAA without any methodology prescribed for profiteering. The court has posted the matter to March 4.

Earlier, the court had clubbed petitions of over 50 including HUL, Abbott, Johnson & Johnson, Philips, Acme Developers, Samsonite, Jubilant Foods, Nestlé, Whirlpool, Samsung, Subway, Reckitt Benckiser and Patanjali, against NAA, Abhishek Rastogi, counsel for several petitioners said.

On behalf of the companies, Rastogi, partner at Khaitan & Co, argued, “There have been various instances where the process has not been followed — there is no recording of the prima facie evidence or any conclusive report by the standing committee or the screening committee.”

He also cited instances of parties being investigated even when they were not making supply.

The counsel also said that there were cases where real estate projects commencing after the GST cut-off date had been investigated for alleged profiteering.

“The first test of anti-profiteering is that there should be a decrease in the tax rate or increase in The instances where there is an absence of these two factors, we have taken them to the court at the DGAP (Directorate General of Anti-profiteering) stage itself,” he argued.

Clause 171 has been inserted in the GST Act which provides it mandatory for to pass on the benefit due to the reduction in the rate of tax or from to the consumer by way of commensurate reduction in prices.

“The constitutional validity of anti-profiteering provisions was argued today. The validity of the provisions mentioned in Section 171 needs to be tested in the absence of any methodology prescribed to determine the quantum of profiteering,” Rastogi said.

He said at this stage, the court wanted to determine whether provisions of anti-profiteering were constitutional. After the court decides the legality of the provisions, it would go into details of individual facts, he informed.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, February 15 2021. 20:29 IST