Mrtpc Notice To Tata Chem Over Price Rigging

The Monopolies and Restrictive Trade Practices Commission (MRTPC) has issued a notice of enquiry to Tata Chemicals and one of its distributor-cum-selling agents for manipulating prices and delivery conditions of soda ash.

According to a complaint from a Kochi-based small-scale industry, the respondents were charging higher basic price than what was declared to the department of central excise.

The commission served notice to Tata Chemicals and its distributor, South India Corporation Ltd, for indulging in trade malpractices attracting section 2(0)(ii) and section 33(1)(a) of the Monopolies and Restrictive Trade Practices.

An investigation carried out by the Director General of Investigation and Registration (DGIR) found out that the respondents charged excise duty more than that collected by the excise authorities.

 

According to the Director General of Investigation and Registration's investigation report, the respondents also charged Rs 1,079 per tonne in the name of transportation and handling charges, the notice said.

By manipulating the transportation and handling charges for soda ash, the respondents have imposed additional cost to the tune of several lakhs of rupees on the complainant, the notice said.

Apart from charging higher basic price of soda ash, the respondents also denied Modvat credit certificates to the complainant, which would have enabled it to save itself from paying further excise duty on its final product.

They also created a huge amount of fictitious interest recoverable from it by preparing invoices of sales on their own, the complainant stated.

The complainant had to bear additional cost by way of charging sales tax and additional sales tax on the freight collected for carrying soda ash from Mithapur to its godown.

The aforesaid trade practices for manipulating prices and conditions of delivery of soda ash along with trade practice of refusal of supply to the complainants attract section 2(0)(ii) and section 33(1)(a) of the Monopolies and Restrictive Trade Practices Act, the notice said.

The commission has also ordered an inquiry to find out whether the respondents have indulged in any restrictive or unfair trade practices.