The Delhi High Court Monday stayed the National Anti-profiteering Authority (NAA) order directing pharma major Reckitt Benckiser to deposit in the consumer welfare fund over Rs. 63 lakh, which it allegedly profiteered from the sale of Dettol handwash between 2017 to 2019.
The DGAP, in its investigation, had found that Reckitt Benckiser had between November 2017 and March 2019 profiteered by Rs 63,14,901 by not passing on to consumers the benefit of GST reduction (on Dettol hand wash) by reducing its prices accordingly.
Accordingly, the NAA passed the order on March 19, 2020, directing deposit of the amount, and also asked Reckitt Benckiser to show cause why the penalty should not be imposed upon it in accordance with the provisions of the Central Goods and Services Tax (CGST) Act.
Reckitt Benckiser, in its plea, has contended that it had passed on the benefit of GST reduction by way of “grammage increase”.
However, the contention of the Reckitt Benckiser was denied by the NAA said the benefit has to be passed on to consumers in monetary terms.
Reckitt further contended that it was not provided with the second complaint nor was it referred to in any of the notices issued to it so far or in the proceedings held before NAA.
The single-judge bench of Justice Rajiv Sahai Endlaw while staying the order of NAA, made it clear the stay would come into operation only if the pharma major deposits the amount with NAA within two weeks.
The court also issued notice to the Ministry of Finance, NAA, and the Director-General of Anti-Profiteering (DGAP), represented by central government standing counsel Ravi Prakash and advocate Farman Ali Magray, seeking their stand on the plea by August 24.
