Setback to L’Oréal: NAA upholds Profiteering Charges [Read Order]

Setback - L’Oréal - NAA - Profiteering Charges - Taxscan

The National Anti-profiteering Authority comprising Chairman Shri Amand Shah and Technical Members  Shri Pramod Kumar Singh and Shri Hitesh Shah has upheld the profiteering charges against M/s L’Oréal and determines the amount of profiteering as Rs. 1,86,39,57,508/- on account of denial of benefit to the customers.

A report submitted by the Director General of Anti-Profiteering concluded that the allegation of profiteering by way of either increasing the base prices of the products while maintaining the same selling price or by way of not reducing the selling prices of the products commensurately, despite a reduction in GST rate from 28% to 18% w.e.f. 15.11.2017 stands established against the Respondent. On this account, the Respondent has realized an additional amount to the tune of Rs. 2,16,49,61,535/- from the recipients during the period from 15.11.2017 to 31.12.2018, which includes both the profiteered amount and GST on the said profiteered amount. The conclusion was based on the documents and information submitted by the Respondent during the course of original investigation. The aforesaid amount was later revised to Rs. 1,86,39,57,058/-.

After hearing both sides, the NAA has directed the Company to pay fifty percent of the amount of Rs. 1,86,39,57,058/- i.e. Rs. 93,19,78,529.5/- along with interest at the rate of 18% (from the date of collection of such amount until the dates on amount is deposited) be deposited in the Central Consumer Welfare Fund and the balance amount is to be deposited in the CWF of the State/ UT where the supply was made.

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