High Court stayed penalty and Interest proceedings initiated by National Anti Profitering Authority upon depositing of amount profiteered by petitioner.

Present writ petition has been filed challenging the order of National Anti-Profiteering Authority.

Petitioner submits that the proceedings initiated against the petitioner are without jurisdiction as they are barred by limitation prescribed under Rule 128(i) of the Central Goods and Services Tax Rules 2017 and are violative of principles of natural justice in as much as the second complaint dated 22nd February, 2019 on the basis of which the investigation is alleged stated to have been initiated was never furnished to the petitioner. He emphasises that the DGAP report dated 19th September, 2019 refers only to the first complaint dated 30th July, 2018 and there is no reference to second complaint dated 22nd February, 2019.

Learned counsel for the petitioner contends that the petitioner had passed on commensurate reduction in prices to its recipients, by grammage increase. He submits that respondent No. 2 had accepted grammage increase as a legitimate methodology to pass on the commensurate reduction in prices consequent upon GST rate reduction in Ankit Kumar Bajoria Vs. Hindustan Unilever Limited, 2019 (21) GSTL J74 (NAPA).

Petitioner is directed to deposit the principal profiteered sum of ₹ 2,33,456/- within two weeks. Upon deposit of the said amount, interest amount as well as the penalty proceedings initiated by the respondents shall stand stayed till further orders.

List the matter on 24th August, 2020 along with other connected matters.

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