High Court (India)

January 16, 2019

Rs 462 Crore Penalty Demand on Hindustan Lever Stayed by Delhi High Court


hindustanunilever

The demand of Rs 462 crore made on Hindustan Unilever Ltd. by the National Anti-Profiteering Authority has been stayed by the Delhi High Court. The National Anti-Profiteering Authority claimed that the consumer goods’ major failed to pass on the benefits of lower goods and service tax rate.

However, the Authority was directed by the court to not take any coercive action or continue penalty proceedings against HUL till it finally determined the matter.

The court asked HUL to deposit Rs 90 crore in two installments, i.e., Rs 50 crore by March 15 and Rs 40 crore by May 15, to the Consumer Welfare Fund. HUL profiteered Rs 419.67 crore due to sales realization following an increase in base prices after a GST rate cut in two slabs—from 28 percent to 18 percent and 18 percent to 12 percent, the Authority had ruled in December 2018.

The Authority also accused HUL of availing transition credit of Rs 76.06 crore, which wasn’t passed to consumers by reducing prices.

Related Post

latest News

  • Shardul Amarchand Mangaldas advise Blackstone Group L.P in acquiring share capital

    Shardul Amarchand Mangaldas & Co (SAM & Co) advised Blackstone Group L.P in acquiring 50% share capital of: (a) Indiabulls Properties Private Limited,...

    Read More
  • Supreme Court is not a platform for anyone to express anything and get away

    The controversial CBI vs CBI case has been on the limelight for the past few days. Now, it seems that the case has taken an annoying position, with th...

    Read More
  • Delhi based AFSPL Director arrested by EOW for swindling of Rs.344 crores of Dalmia Bharat

    The Economic Offences Wing (EOW) of Delhi Police has arrested Allied Financial Services Pvt. Ltd. (AFSPL) Director Awanish Kumar Mishra for swindling ...

    Read More
shares