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Companies need to give Details of ‘complained product’ only before Anti-profiteering authorities: Delhi HC [Read Order]

Anit Profiteering Authority - CBEC - Taxscan

In a significant ruling granting relief to the Companies, a two-judge bench of the Delhi High Court has held that a company is required to give information to the Director-General of Anti-profiteering (DGAP) only about the ‘complained product’ and not about every product it produces.

A complained product refers to a product against which complaint of not passing reduction in GST rate or benefit of Input Tax Credit (ITC) is alleged.

“It is directed that, till the next date, it will not be required to furnish information to the DGAP pursuant to the impugned notice other than information pertaining to the Complained Product,” a division Bench of the Delhi High Court ordered in a matter related with profiteering complaint made against Dettol HW Liquid Original 900 ml, produced by Reckitt Benckiser India.

On receiving the complaint, the National Anti-profiteering Authority (NAA) ordered an enquiry of profiteering against the said product. However, the company moved to Delhi High Court contending that as per the provisions under the GST Rules, without a report of the DGAP on the Complained Product followed by an order of NAA, the DGAP cannot suo motu issue a notice requiring the Petitioner to submit information on all its products.

Finding a prima facia case in the contentions of the petitioner, Justice S Muralidhar and Justice Talwant Singh observed that “The Court is of the view that the Petitioner has made out a prima facie case for granted of limited interim relief. It is directed that, till the next date, it will not be required to furnish information to the DGAP pursuant to the impugned notice other than information pertaining to the Complained Product. It is, however, clarified that the NAPA’s inquiry as far as the Complained Product is concerned will proceed in accordance with law.”

The matter has been listed for hearing on August 22.

Earlier, in the case of Abbott Healthcare Private Ltd it was held that DGAP cannot proceed to investigate into products other than those covered in the notice and stay was granted until further order.

To Read the full text of the Order CLICK HERE
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