The Delhi High Court has observed that the deferment in forming a State Consumer Welfare Fund is a sheer violation of the statute which is causing inconvenience to the public at large.
Factual Background
The Court was dealing with an application filed by one M/S Krishna Trading Company, the petitioner in the matter in Section 151 of the Code of Civil Procedure, 1908 seeking permission to make a deposit of Rs. 14,01,705 with the Central Consumer Welfare Fund.
The Court was given an assurance that the State Consumer Welfare Fund shall be functional and operational within a period of four weeks.
Case of the Applicant
It was submitted by the applicant that in terms of the order dated 18th August 2021 of the High Court, the company was directed to deposit the profiteering amount in the ratio of 50:50 with the Central Consumer Welfare Fund as well as the State Consumer Welfare Fund in terms of Rule 133(3) (c) of the CGST Rules, 2017.
Case of the Respondent
The respondent, on the other hand, submitted that on the instructions received from the Deputy Controller of Accounts, Trade and Tax Department, it was stated that the amount meant for the Consumer Welfare Fund Delhi may be obtained from the registered firm via Demand Draft in favour of the Commissioner, Trade and Taxes Department Government of NCT Delhi.
Observation of the Court
“Delay in the constitution of the Welfare Fund is a violation of the statute and is causing inconvenience to the public at large. The stopgap arrangements suggested by GNTCD in its status report is not sanctioned by the statute and cannot be countenanced by the Court”.
Further, it was added,
“It seems that none of the parties is cognizant of the fact that the State Consumer Welfare Fund is a statutory fund which is urgently required to be incorporated”.
Case Details
Before: Delhi High Court
Case Title: M/S Krishna Trading Company v. Union of India and Others
Coram: Hon’ble Mr. Justice Manmohan Singh and Justice Navin Chawla Jasmeet Singh
Social media is bold.
Social media is young.
Social media raises questions.
Social media is not satisfied with an answer.
Social media looks at the big picture.
Social media is interested in every detail.
social media is curious.
Social media is free.
Social media is irreplaceable.
But never irrelevant.
Social media is you.
(With input from news agency language)
If you like this story, share it with a friend!
We are a non-profit organization. Help us financially to keep our journalism free from government and corporate pressure
0 Comments