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    • HC relief to J&J:...

    HC relief to J&J: stays order directing co to pay Rs 230 crore on account of GST profiteering

    Medical Dialogues BureauWritten by Medical Dialogues Bureau Published On 5 March 2020 7:15 AM  |  Updated On 5 March 2020 8:01 AM
    HC relief  to J&J: stays order directing co to pay Rs 230 crore on account of GST profiteering

    It also said that prima facie the methodology used by NAPA to arrive at its finding of profiteering was "flawed".

    New Delhi: The Delhi High Court Wednesday stayed the NAPA order directing Johnson and Johnson to deposit over Rs 230 crore it allegedly profiteered by not passing on benefits of GST reduction in over 306 items, including baby products, through commensurate price cut. A bench of Justices Vipin Sanghi and Sanjeev Narula also restrained the National Anti-Profiteering Authority (NAPA) and the Centre from initiating any penalty proceedings against healthcare major Johnson and Johnson Pvt Ltd.

    It also said that prima facie the methodology used by NAPA to arrive at its finding of profiteering was "flawed".

    The court issued notice to the Centre, NAPA and Director General of Anti-Profiteering seeking their stand on the company's petition challenging the direction to deposit the allegedly profiteered amount in a consumer welfare fund.

    Apart from quashing of the NAPA order of December 23 last, Johnson and Johnson (J&J) have also sought setting aside of a penalty notice issued to it by the authority on January 27.

    It has also sought to declare a certain provision of the CGST Act and Rules as unconstitutional.

    The bench stayed the order and restrained NAPA from initiating any penalty proceedings against J&J till the next date of hearing on September 24.

    NAPA, in its December 23 last order, had held that the company did not pass on the benefit of reduction in tax rate from November 2017 to December 2018 and hence, profiteered an amount of Rs 2,30,40,74,132 in contravention of the Central Goods and Services Tax (CGST) Act.

    The government had from November 15, 2017, reduced GST from 28 per cent to 18 per cent on products like baby wipes, baby powder, creams etc which are manufactured by J&J.

    NAPA also directed the company to deposit the amount along with an interest of 18 per cent from when the amount was realised by it until it deposits the same in a consumer welfare fund.

    J&J has refuted the allegation of profiteering against it, saying the benefit of tax reduction was passed on by it.

    It has claimed said that NAPA has determined profiteering of over Rs 230 crore based on "arbitrary, unreasonable and capricious methodology".

    Read also: JnJ Faulty Hip Implants: 171 patients received compensation, says Ashwini Kumar Choubey

    napahigh-courtjohnson-and-johnsonj&jcgst
    Source : PTI

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    Medical Dialogues Bureau
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      Medical Dialogues Bureau consists of a team of passionate medical/scientific writers, led by doctors and healthcare researchers.  Our team efforts to bring you updated and timely news about the important happenings of the medical and healthcare sector. Our editorial team can be reached at editorial@medicaldialogues.in. Check out more about our bureau/team here

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