Case Law Details
Reckitt Benckiser India Private Limited Vs Union of India And Ors (Delhi High Court)
In the latest anti profiteering case of pharma major Reckitt Benckiser over alleged profiteering of 63 lakh from the sale of Dettol handwash between 2017 to 2019, Hon’ble Delhi High court has stayed the order of National anti-profiteering authority for deposit of alleged profiteering amount in the consumer welfare fund. Read NAA order: Benefit of tax reduction to the customers should be passed only by way of Rate Reduction: NAA
Background
Earlier, the Director General of Anti-Profiteering, in its investigation, had found that Reckitt Benckiser had between November 2017 and March 2019 profiteered by Rs 63,14,901 by not passing on to consumers the benefit of GST reduction.
In its plea, Reckitt Benckiser has contended that it had passed on the benefit of GST reduction by way of “grammage increase”. While rejecting the defence regarding ‘grammage increase’, NAA stated that costs could not have been suddenly increased on the intervening night of 14/15.11.2017 . Further, once the rate reduction has occurred which could have forced increase in prices.
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