Court notice challenges Anti-Profiteering Authority order on GST, allows installment payment.

The court issued notice to the respondents regarding a challenge to the National Anti Profiteering Authority's order on profiteering inclusive of GST. The petitioner sought to quash directions on interest and penalties, declaring certain GST provisions unconstitutional. Due to Covid-19 impact, installment-based payment of the remaining amount was requested. The court directed deposit of the principal profiteered amount in installments, stayed interest and penalty proceedings, and ordered concise submissions from both parties. Further proceedings were scheduled for a specific date, with the order to be shared promptly.

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Issues:
Challenge to judgment of National Anti Profiteering Authority (NAPA), constitutionality of certain GST provisions, installment payment request due to Covid-19 impact.

Analysis:
The petition challenges the NAPA's order holding the petitioner liable for profiteering an amount inclusive of GST during a specific period. The petitioner seeks to quash the directions on interest and penalties in the impugned order. Additionally, a declaration is sought that Section 171 of Central Goods and Services Tax Act and certain CGST Rules are unconstitutional and violate various Articles of the Indian Constitution. The constitutionality of NAPA under Rule 122 of CGST Rules is also contested, citing conflict with Supreme Court directions.

The petitioner, through its counsel, highlights that the alleged profiteered demand, including the GST component, has already been deposited with the Tax Department. Due to the Covid-19 pandemic, a plea is made for allowing installment-based payment of the remaining amount. The court issues notice to the respondents, and counter-affidavits are directed to be filed within two weeks, with an opportunity for rejoinder-affidavits before the next hearing.

Referring to previous judgments, the court orders the petitioner to deposit the principal profiteered amount in installments, starting from a specified date. The interest and penalty proceedings are stayed pending further orders. Both parties are instructed to submit concise written submissions before the next hearing date. The case is listed for further proceedings on a specific date, and the order is to be uploaded on the court's website and shared with the counsels via email promptly.

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