High Court examines challenge to Section 171 of Goods and Services Act, 2017 with interim relief orders.

The High Court addressed a writ petition challenging the legality of Section 171 of the Central Goods and Services Act, 2017, and related Rules. The court issued notices to the respondents and allowed for filing of counter affidavits on facts. The court directed the petitioner to deposit the principal profiteered amount in instalments within six months for interim relief. A stay was granted on the recovery direction, and a separate hearing was scheduled to discuss the reduction of prices direction. Further proceedings were set for February 15, 2021.

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Issues:
Challenge to the vires of Section 171 of the Central Goods and Services Act, 2017 and Rules 122, 126, 127, and 133 of the Central Goods and Services Tax Rules, 2017.

Analysis:
The High Court addressed a writ petition challenging the legality of Section 171 of the Central Goods and Services Act, 2017, along with Rules 122, 126, 127, and 133 of the Central Goods and Services Tax Rules, 2017. The court noted that similar petitions with comparable challenges were scheduled for a hearing on February 15, 2021. The court issued a notice to the respondents, which was accepted by their counsels. Since counter affidavits on legal matters were filed in other related writ petitions, no additional counter affidavit was required on legal issues. However, the court allowed for the filing of a counter affidavit on facts within six weeks, with a provision for a rejoinder within three weeks thereafter.

Regarding interim relief, the court referred to specific cases and directed the petitioner to deposit the entire principal profiteered amount, excluding the already deposited GST amount, within six months in equal monthly instalments. In return, there would be a stay on the recovery direction. The court also addressed the reduction of prices direction in the impugned order and instructed the respondents to file a reply to the application for interim relief. A separate hearing date was set for further discussion on this matter, with a stay on the said direction until then. The case was listed for further proceedings on February 15, 2021.

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