Power of Section 171 of the CGST Act 2017 and Rules 122, 126 and 133 of the CGST Rules 2017

Last updated: 24 February 2021

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The Delhi High Court is hearing a challenge to Section 171 of the CGST Act 2017 and related rules. In an interim order, the court has granted a stay on the direction for price reduction, provided the petitioner deposits the principal profiteered amount within four months. The court has also stayed the direction for payment of the profiteered amount, pending further replies and hearings.

Court :
Delhi High Court

Brief :
The challenge in this writ petition is to the vires of Section 171 of the Central Goods and Services Act, 2017 and Rules 122, 126 and 133 of the Central Goods and Services Rules, 2017.

Citation :
Appeal Number : W.P.(C) 1366/2021

IN THE HIGH COURT OF DELHI AT NEW DELHI
W.P.(C) 1366/2021
TATA STARBUCKS PRIVATE LIMITED ..... Petitioner
Through: Mr. Rohan Shah and Mr. S. Mahesh
Shasranaman, Advs.

Versus

UNION OF INDIA & ORS. ..... Respondents
Through: Mr. Ravi Prakash and Mr. Aditya
Hooda, Advs. for R-1 to 3.
Mr. Amit Bansal and Ms. Vipasha
Mishra, Advs. for R-4.

CORAM:
HON'BLE MR. JUSTICE RAJIV SAHAI ENDLAW
HON'BLE MR. JUSTICE SANJEEV NARULA

O R D E R
11.02.2021

[VIA VIDEO CONFERENCING]

CM No.3821/2021 (for exemption)

1. Allowed, subject to just exceptions and as per extant rules.

2. The application is disposed of.

W.P.(C) No.1366/2021 & CM No.3820/2021 (for interim relief)

3. The challenge in this writ petition is to the vires of Section 171 of the Central Goods and Services Act, 2017 and Rules 122, 126 and 133 of the Central Goods and Services Rules, 2017.

4. Other writ petitions entailing similar challenge are listed on 15th February, 2021.

5. Issue notice.

6. Notice is accepted by the counsels for the respondents.

7. We have heard the counsel for the petitioner and the counsel for the respondents on the interim relief.

8. Keeping in view the orders passed by this Court in Philips India Limited vs. Union of India W.P.(C) No. 3737/2020, Samsonite South Asia Pvt Ltd vs. Union of India W.P.(C) No. 4131/2020, Patanjali Ayurved Ltd. Vs. Union of India W.P.(C) No. 4375/2020 and Cilantro Diners Pvt Ltd Vs. Union of India W.P.(C)4824/2020, subject to the petitioner depositing the entire principal profiteered amount i.e. Rs. 1,04,70,664/- as levied excluding the GST amount already deposited, within four months, in equal monthly instalments, there shall be a stay, as far as the direction for payment is concerned.

9. As far as the direction in the impugned order, for reduction of prices is concerned, it is deemed appropriate that the respondents file a reply to the application for interim relief. A separate date for hearing of CM No.3820/2021 qua the said direction, be sought on 15 th February, 2021; till then, there shall be stay of the said direction.

10. List on 15th February, 2021.

RAJIV SAHAI ENDLAW, J.
SANJEEV NARULA, J.

FEBRUARY 11, 2021
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FAQ :

The writ petition challenges the constitutional validity (vires) of Section 171 of the Central Goods and Services Tax Act, 2017, and Rules 122, 126, and 133 of the Central Goods and Services Rules, 2017.

The court has granted a stay on the direction for payment of the profiteered amount, subject to the petitioner depositing the principal profiteered amount (excluding GST) within four months in equal instalments. A stay has also been granted on the direction for price reduction until further orders.

The principal profiteered amount in this specific case is Rs. 1,04,70,664/-, excluding the GST amount already deposited.

The matter is listed for further hearing on 15th February, 2021.