Companies are accused of ‘profiteering’ when they deliberately fail to pass on the benefits for a GST rate cut to customers through the final price
The Delhi High Court (HC) on August 24 heard 37 anti-profiteering pleas, including the ones filed by Johnson & Johnson (J&J) and Hindustan Unilever (HUL).
The court also heard petitions by Reckitt Benckiser, Patanjali Ayurved, Philips India, Jubilant FoodWorks, and IFB, Business Standard reported.
The companies questioned the constitutional validity of the anti-profiteering rules under Section 171 of the Central GST (CGST) Act.
The Delhi HC adjourned the matter to November 3. It also served a notice to the Attorney General of India over the constitutional validity of the provision, the report said.
Companies are accused of 'profiteering' when they deliberately do not pass on the benefits for a GST rate cut to customers through the final price."While the court would initially decide the aspect of the constitutional validity of Section 171 of the CGST Act, the determination of the quantum of profiteering cannot be ignored and hence, would have to be argued for each specific petition. These facts in each petition would also play an important role to decide the actual profiteering, if at all," the report quotes Abhishek A Rastogi, Partner at Khaitan & Co, as saying. Rastogi is arguing the seven petitions mentioned above.