The Delhi High Court has given interim relief to real estate developer Pyramid Infrastructure, which had been fined for profiteering under the goods and services tax (GST), offering hope to other companies that have come under the National Anti-profiteering Authority (NAA) scanner.
In a writ petition filed with the court last month, the company had raised questions on the methodology used by the NAA to calculate the fine. It had also claimed that the lack of clarity on Anti-profiteering is a mechanism to ensure that companies pass on the benefits derived from GST to customers. If NAA discovers that this hasn’t been done, it can fine the errant companies.
“The Delhi High Court on Tuesday stayed an order passed by the NAA and questioned the methodology to calculate the quantum of anti-profiteering. The court has asked the petitioner to pay the amount that was accepted by the petitioner in the earlier round of litigation before the NAA,” said Abhishek A Rastogi, partner, Khaitan and Co, a counsel of the company. In the past few months many companies have engaged tax experts to find out how they can pass on the benefits of GST to consumers.
Source :- Economictimes.indiatimes.com