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Anutone Acoustics Limited vs Union Of India & Ors on 30 November, 2022

Author: Manmohan

Bench: Manmohan, Dinesh Kumar Sharma

                              $~SB-3
                              *     IN THE HIGH COURT OF DELHI AT NEW DELHI
                              +     W.P.(C) 15289/2022 & C.M.Nos.47442-47443/2022
                                    ANUTONE ACOUSTICS LIMITED               ..... Petitioner
                                                Through: Mr.Karan Sachdev and Mr. Agrim
                                                         Arora, Advs.

                                                        Versus

                                    UNION OF INDIA & ORS.                             ..... Respondents
                                                  Through:           Mr.Sushil Kumar Pandey with
                                                                     Mr.Kuldeep Singh, Advocates for
                                                                     UOI.
                                                                     Mr.Vipul    Agrawal,     Jr.Standing
                                                                     Counsel, Mr.Vivek Gurnani and
                                                                     Ms.Niharika Kuchhal, Advocates for
                                                                     NAA and DGAP.
                              CORAM:
                              HON'BLE MR. JUSTICE MANMOHAN
                              HON'BLE MR. JUSTICE DINESH KUMAR SHARMA
                                                        ORDER

% 30.11.2022 Present writ petition has been filed challenging the order dated 09th May, 2022 passed by the Respondent No.2. Petitioner also seeks quashing of the impugned notice dated 01st July, 2022 issued by the Respondent No.3 as well as to declare Section 171 of the Central Goods and Services Tax Act (for short 'CGST Act'), Rule 122 of the Central Goods and Services Tax Rules (for short 'CGST Rules), Chapter XV of the CGST Rules, more particularly, Rules 126, 127 & 133 as unconstitutional, ultra vires and violative of Articles 14, 19(1)(g), 265 & 300A of the Constitution of India.

Petitioner also challenges paragraph 1 of the 'Bringing the Directorate General of Anti-Profiteering under Superintendence, Direction and Control of the National Anti- Profiteering Authority -- Notification of detailed Guidelines by NAA' dated 04th October, 2019 issued by the Respondent No.2 and declaring the same as ultra vires and violative of Rule 133(4) of the CGST Rules.

By way of the impugned order, it has been held that the Petitioner did not pass on the commensurate benefit of input tax credit to Respondent No.4 and hence profiteered to the extent of Rs.12,79,304/- (Rs.10,84,156/- is the principal profiteered amount excluding GST) in contravention of Section 171(1) of the CGST Act.

Learned counsel for the Petitioner states that subsequent to the price quoted in February 2017, the cost of goods was increased by the Petitioner's supplier situated in China by 10% to 11%. He states that Petitioner decided to supply in August-November, 2017 at the price decided in February 2017, as a business decision to continue good relations with Respondent No.4 and as such the anti profiteering provision has no application in the present case.

Issue notice.

Mr. Sushil Kumar Pandey, Advocate accepts notice on behalf of Respondent No.1 and Mr. Vipul Agrawal, Advocate accepts notice on behalf of Respondent Nos.2 &3.

Keeping in view the orders passed by this Court in Phillips India Limited Vs. Union of India & Ors. [W.P.(C) No.3737/2020] as well as M/s Samsonite South Asia Pvt. Ltd. Vs. Union of India & Ors. [W.P.(C) No.4131/2020] and M/s Patanjali Ayurved Ltd. Vs. Union of India & Ors. [W.P.(C) No.4375/2020], this Court directs the petitioner to deposit the Signature Not Verified Digitally Signed By:JASWANT SINGH RAWAT Signing Date:03.12.2022 17:30:26 principal profiteered amount i.e. Rs.10,84,156/- within two months with the Registry of this Court.

The interest amount directed to be paid by the respondents is stayed till further orders. Learned counsel for the parties are directed to file their short written submissions not exceeding five pages prior to the next date of hearing.

List on 6th and 7th December, 2022.

MANMOHAN, J DINESH KUMAR SHARMA, J NOVEMBMER 30, 2022 AS Signature Not Verified Digitally Signed By:JASWANT SINGH RAWAT Signing Date:03.12.2022 17:30:26