Case Law Details
Jubilant Foodworks Ltd. & Anr. Vs Union of India & Ors (Delhi High Court)
As far as the facts of the present case are concerned, one grievance is that although the Petitioners deal in as many as 393 products, and even according to the NAPA they are compliant in regard to the price of many of such products, the NAPA has been selective in drawing an adverse conclusion in respect of the price charged for a few of the products. It is submitted that if the pricing of all the products is considered cumulatively, and not individually as done by the NAPA, then the Petitioners would not fall foul of the law. It is further submitted by Mr. Mukul Rohatgi, learned Senior counsel for the Petitioners, that in law there is no restriction on what price the Petitioner No.1 can charge for its product. Therefore, it is open to Petitioner No.1, notwithstanding the reduction in the rate of tax after 15 November 2017 to raise the base price of the product so that the ultimate price payable by the customer inclusive of tax remains what it was prior to 15 November 2017. Mr. Rohatgi points out that simultaneously with the reduction of tax the ITC was taken away and this is an additional factor that has to be considered while determining whether the Petitioner could be held to be a “profiteer” from the reduction of rate of tax.
The Court is of the view that the Petitioners have made out a prima facie case and that at this stage the balance of convenience is also in their favour for an interim order being passed in the manner indicated hereafter.
Under the impugned order of the NAPA, the Petitioners are required to deposit an amount of Rs.41,42,97,629.35 with the Central and State Consumer Welfare Funds (“CWFs”) in a 50:50 ratio. It is accordingly directed that subject to the Petitioners depositing the sum of Rs.20 crores with the Central CWF within a period of four weeks from today, there shall be a stay of the impugned order dated 31st January 2019 of the NAPA as well as stay of further proceedings pursuant to the impugned notice dated 4th February 2019 issued by the Respondent No.2.
FULL TEXT OF THE HIGH COURT ORDER / JUDGEMENT
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