Jubilant Foodworks Ltd. v. Union of India – 2019 (31) G.S.T.L. J90 (High Court – Delhi)

Facts: In this case, the Petitioner has filed writ to challenge the order of NAPA in which the petitioners are required to deposit an amount of Rs.41.43 crore with the Central & State Consumer Welfare Funds (“CWFs”) in a 50:50 ratio. It was held by that petitioner resorted to profiteering by charging more price than what it could have charged by issuing wrong tax invoice. He has also alleged that the Rules 126,127 and 133 as being violative of Article 14 and 19 of the Constitution of India.

Order/Ruling:

  • Petitioner submitted that there is no restriction on what price the petitioner can charge for its product. Therefore, it is open to petitioner to raise the base price so that the ultimate price payable by the customer inclusive of tax remains what it was prior to 15th November 2017 that is before reduction in tax rate.
  • An interim order was passed as a prime facie case was made by petitioner. It was accordingly directed that subject to the Petitioners depositing the sum of Rs.20 crores with the Central CWF within a period of four weeks from today, there shall be a stay of the impugned order.

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