In a first, the Delhi High Court allowed Samsonite India, a company engaged in the manufacturing and sale of travel bags, to deposit the profited amount of the goods and services tax (GST) in a staggered manner given the Covid-19 pandemic situation. Experts believe this will form a precedent, paving the way for more businesses to make these petitions.(GST search here)
The Court allowed Samsonite to pay the concept profiteered amount if Center and states consumer welfare fund Rs 21.81 crore in six equated monthly installments."... The Court, taking into account the pandemic situation in Covid-19, orders the applicant to deposit the principal Profiteered sum i.e. Rs 21,81,20,748/- (i.e. Rs 25,73,82,482/- minus Rs 3,92,61,734/-) in six monthly equal installments... "said the order.
A fine of Rs 25.74 crore was imposed on Samsonite India by the National Anti-Profiting Authority (NAA) for allegedly not lowering the prices of its goods after the GST Council reduced the tax rates in December 2017 from 28 to 18%.
The organization was also asked to pay an interest rate of 18 percent for the period between the sum it received from clients and the sum of profiteering deposited. NAA directed Samsonite to pay half the amount —Rs 12.87 crore to the Central Consumer Welfare Fund and the other half to the 33 states 'and union territories' Consumer Welfare Funds. Rahat Mohan, partner, AMRG Associates said this petition would be taken as a precedent and other firms are also likely to move high courts respectively and appeal for phased payment of profiteered amount, further denting the coffers of consumer welfare funds.
Although the complaint was lodged against the company for profiting on a single product — American Tourister Sky Tracer HL Blue 68-cm Hard Trolley — Anti-Profiteering's Managing Director extended his investigation to include other company items as well.