Section 171 of the CGST Act, 2017--Directorate General of Anti-Profiteering Order ---- The petitioner challenged the order dated 23rd June, 2022 and challenged Section 171 of the Act, more particularly Rules 126, 127 & 133 of the Rules as unconstitutional. The counsel for the petitioner submitted that NAA is not netting of the benefit of rate reduction extended in some products as against those where the petitioner has not extended the benefit of rate reduction qua the subject products, by way of commensurate reduction in prices. The petitioner has given post sale discount to the tune of Rs.73.59 crores, and therefore, this amount should be reduced from the total profiteered sum. The court observed that casts an obligation of every supplier of goods and services to pass on the benefit of rate reduction of GST or the benefit of ITC on every supply and not on some supplies. Consequently, a supplier cannot claim that he has passed on more benefit to one customer therefore he could pass less or no benefit to another customer. Further the post-sale discount has not been granted on account of GST rate reduction and therefore, does not qualify as commensurate reduction in prices as required under Section 171 of the Act.

Held that:- The Hon’ble High Court directed the petitioner to deposit the principal profiteered amount after deducting the GST imposed on the net profiteered amount  in six equated instalments commencing 10th October, 2022. The interest amount directed to be paid by the respondents as well as the penalty proceedings and further investigation by NAA in respect of other products sold by the petitioner are stayed till further orders. Listed the matter on 19th October, 2022.