Lawstreet Journal

High Court of Delhi Suspends Penalty Proceedings Against Patanjali Ayurved [READ ORDER]

Lawstreet Journal 26 Jul 2020 6:57pm

Image courtesy: Lawstreet Journal Judiciary High Court of Delhi Suspends Penalty Proceedings Against Patanjali Ayurved [READ ORDER]

The High Court of Delhi on July 24, 2020, stayed the penalty proceedings started against Patanjali Ayurved for supposedly profiteering Rs 75 crore after the sale of its goods, conditioned to the requirement that it deposits the sum in array in the consumer welfare fund in half-yearly instalments.

A two-judge bench of Justices Manmohan and Sanjeev Narula provided the instruction on Patanjali’s plea that challenges the March 12, 2020 notice of the National Anti-Profiteering Authority (NAA) alleging that the company refused to its customers the advantages of decrease in Goods and Services Tax (GST) from November 2017 to March 2019.

The high court also gave an order to the Centre, NAA, and the Director-General of Anti Profiteering (DGAP) that sought their statement on the company’s stand which has said that NAA “failed to appreciate” that Patanjali has sent over Rs 151 crore as benefits to the consumers.

On behalf of Patanjali, Senior Advocate Aman Sinha has also opposed the constitutionality of Section 171 of Central Goods and Service Tax Act, 2017 which states that “any reduction in the rate of tax on any supply of goods or services or the benefit of the input tax credit shall be passed on to the recipient by way of commensurate reduction in prices.”

Patanjali claims that it gave the benefits in tax reduction to consumers through many methods, which is inclusive of cashback schemes, discounts through secondary and retailer schemes, and not increasing the selling price of certain items even after an increase in the tax rate.… Continue Reading...


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