Delhi HC grant stay on order passed by NAA for Nestle

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The Delhi High Court has again stayed National Anti-profiteering Authority’s (NAA’s) order to recover ₹73 crores by March , for not passing the benefits of the input tax credit (ITC) to the consumers. The stay is granted through an order issued on 10th February , 2020 . The stay was on the ground that Nestle had already paid ₹16.58 crore of the total demand of ₹89.73 crore.

This will give some relief to company for a while . Although, it’s has been accused that the benefits of input tax credit should have been passed on to the recipient by way of reduction in prices , Nestor is constantly denying these accusations and claiming that the benefits largely have been passed on by way of reduction of MRP or by way of increase in grammage. On SKUs (stock-keeping units), where it was not practicable to pass on the benefits, say for example Nescafe packs for ₹2, or Maggi noodles ₹5 packs, the benefit has been passed on other pack sizes within the same product category.

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