Categories: Business

HC stays NAA order to Reckitt to deposit Rs 63 lakh


HC stays NAA order

new Delhi. The Delhi High Court on Monday deferred an order by the National Anti-profiteering Authority asking the pharma sector major Reckitt Benckiser to deposit Rs 63 lakh in the Consumer Welfare Fund. The authority ordered the deposit of the amount for alleged profiteering during the sale of Dettol handwash between 2017 and 2019. Justice Rajiv Sahai Andlaw made it clear that the ban would be effective only if the pharma company deposited the said amount with the authority within two weeks.

Earlier, the authority had asked the company to deposit the amount in the order dated March 19, 2020 and also asked the company why it should not be fined as per the provisions of the Central Goods and Services Tax (CGST) Act. The court said that further action could continue on the show cause notice of the authority, but no final order imposing penalty on the pharma company should be considered effective till the hearing of this petition. The court also issued notices to the Ministry of Finance, NAA and Directorate General of Anti-Profit (DGAP), represented by Ravi Prakash, Permanent Advocate of the Central Government and Advocate Farman Ali Magare. He asked for time till August 24 to present his case on the petition.

Earlier in its investigation, DGAP found that Reckitt Benckiser profited Rs 63,14,901 between November 2017 and March 2019 and did not pass on the benefit of GST deduction to Dettol handwash to consumers. Reckitt Benckiser stated in his petition that he gave GST benefit by increasing the volume.

This post was published on July 20, 2020 5:57 pm

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