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Delhi HC Stays Anti Profiteering Penalty Proceedings Against Patanjali Ayurved [Read Order]

Karan Tripathi
25 July 2020 6:20 AM GMT
Delhi HC Stays Anti Profiteering Penalty Proceedings Against Patanjali Ayurved [Read Order]
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Delhi High Court has stayed the anti profiteering penalty proceedings against Baba Ramdev's Patanjali Ayurved Limited till further orders.

The Division Bench of Justice Manmohan and Justice Sanjeev Narula has however directed Patanjali to deposit the principal profiteered amount i.e. Rs. 75,08,64,019/- in six equated monthly instalments commencing 15th August, 2020.

The order has come in a writ petition filed by Patanjali challenging the constitutionality and legality of National Anti-Profiteering Authority as well as Section 171 of the Central Goods and Services Tax Act and Rules 122, 126, 127 and 133 of the Central Goods and Services Tax Rules.

The Petitioner has also challenged an order dated 12/03/20 passed by the National Anti Profiteering Authority on the ground that the same authority cannot be both the complainant and the adjudicating authority.

In addition to this, the Petitioner has claimed that the said order passed by the authority is without jurisdiction and contrary to statutory provisions.

Appearing for the Petitioner, Senior Advocate Aman Sinha argued that in the absence of a methodology the entire proceeding before National Anti Profiteering Authority is in breach of natural justice and violative of Articles 14 and 19(1)(g) of the Constitution.

He further informed the court that in 35 similar matters this court has issued notice and listed the matters for hearing on 24th August, 2020.

While issuing notice to the Central Government, the court directed both the parties to file brief written submissions.

The court also said:

'Keeping in view the orders passed by this Court in Phillips India Limited vs. Union of India & Ors. (supra) and M/s. Samsonite South Asia Pvt. Ltd. vs. Union of India (supra) as well as the fact that no ground of financial hardship has been pleaded in the present writ petition, this Court directs the petitioner to deposit the principal profiteered sum.'

The court will next take up the matter on August 24.

Click Here To Download Order

[Read Order]



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