Court allows installment payment for profiteered amount due to COVID-19

The Court granted the petitioner's request to deposit the principal profiteered amount in six monthly installments due to the COVID-19 pandemic. The installment schedule required the petitioner to pay the amount over time, with the first payment due on 15th August 2020 and the final payment on 15th January 2021. Respondents were directed to file counter affidavits within two weeks, and the Court stayed interest and penalty proceedings initiated by the respondents. The matter was listed for 24th August 2020 for further proceedings.

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Issues: Challenge to constitutionality and legality of National Anti Profiteering Authority, Section 171 of the Central Goods and Services Tax Act, and Rule 126 of the Central Goods and Services Tax Rules.

Analysis:
- The petitioner challenged the constitutionality and legality of the National Anti Profiteering Authority, Section 171 of the Central Goods and Services Tax Act, and Rule 126 of the Central Goods and Services Tax Rules. The petitioner argued that the absence of a methodology in the proceedings before the Authority breached natural justice and due process, leading to arbitrary and contradictory orders. The total alleged profiteered demand against the petitioner was stated to be Rs. 25,73,82,482, including the GST imposed on the net profiteered amount, which had already been deposited with the Tax Department.

- The Court had previously indicated its intention to direct the petitioner to deposit the principal profiteered amount of Rs. 21,81,20,748. Due to the COVID-19 pandemic, the petitioner requested permission to deposit this amount in installments. The Court granted the request, directing the petitioner to pay the principal amount in six equated monthly installments. The installment schedule was provided, with the first payment due on 15th August 2020 and the final payment on 15th January 2021.

- Respondents were directed to file their counter affidavits within two weeks, with an additional two weeks given for any rejoinder affidavits. Despite objections from the respondent-Authority, the Court allowed the petitioner to pay in installments considering the pandemic situation. The Court also stayed the interest amount and penalty proceedings initiated by the respondents until further orders.

- Counsel for all parties were instructed to submit short written submissions not exceeding five pages each at least one week before the next hearing date. The matter was listed for 24th August 2020 along with other related cases. The order was to be uploaded on the website immediately, and a copy was to be sent to the counsel via email.

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