Delhi High Court allows Samsonite to pay profiteering penalty in instalments

By

Isabelle Crossley

Published
Jul 22, 2020

The Delhi High Court has ruled to allow luggage brand Samsonite South Asia to pay its penalty for goods and services tax profiteering in instalments, due to the business’ financial struggles, caused by Covid-19.

 
Samsonite South Asia has been allowed to pay its Rs 21.81 crore ($3.28 million) penalty through six equal instalments, as opposed to in one lump sum, as was previously decided, ET Bureau reported. The business had requested the court to set easier payment terms, saying it had suffered financially during the coronavirus pandemic and lockdown, especially as worldwide travel remains mostly halted, causing a significant drop in demand for travel accessories.
 
“This Court keeping in view the Covid-19 pandemic situation, directs the petitioner to deposit the principal profiteered amount i.e. Rs 21.81 crore (i.e. Rs 25.73 crore minus Rs 3.92 crore) in six equated monthly instalments,” said the bench of Justices Manmohan and Sanjeev Narula in an order dated July 20, ET Bureau reported.

Samsonite South Asia, which produces American Tourister bags and travel accessories, was ordered by the National Anti-Profiteering Authority to pay a penalty for failing to pass on GST rate cut benefits to the consumer in 2017. The business was instructed to lower its prices to reflect the new tax rates, as well as pay a penalty.