"Surprised That Delhi Govt Does Not Have A State Consumer Welfare Fund Till Date": High Court Issues Notice To Chief Secretary

The Delhi High Court recently issued notice to the Chief Secretary of the Delhi Government after expressing surprise over the fact that it does not have a State Consumer Welfare Fund till date.

"This Court is surprised to note that Delhi Government does not have a State Consumer Welfare Fund till date," observed a bench comprising Justice Manmohan and Justice Navin Chawla.

The Court was dealing with an application filed by one M/S Krishna Trading Company, the petitioner in the matter, under sec. 151 of the Code of Civil Procedure, 1908 seeking permission to make deposit of Rs.14,01,705 with the Central Consumer Welfare Fund.

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.

Advocate Karan Sachdev appearing for the applicant submitted that since the Consumer Welfare Fund of the Delhi Government was not operational in the State yet, the subsequent instalments made to the Central Fund were not accepted on the ground of non-payment towards the State Consumer Welfare Fund.

He pointed out that the first and second instalment deposited with the Central Consumer Welfare were however accepted.

The respondent, on the other hand, submitted that on the instructions received from the Deputy Controller of Accounts, Trade and Taxes Department, it was stated that the amount meant for the Consumer Welfare Fund Delhi may be obtained from the registered Firm by way of Demand Draft in favour of the Commissioner, Trade & Taxes Department, Government of NCT of Delhi.

"It is not understood as to how money to be deposited with State Consumer Welfare Fund can be deposited with the Commissioner, Trade & Taxes Department, Govt. of NCT of Delhi," the Court remarked.

Accordingly, the Court ordered thus:

"Issue notice to the Chief Secretary, Government of NCT of Delhi, through its Standing counsel, without process fee, returnable for 21st December, 2021. Along with the notice a copy of the order passed today shall be enclosed."

The matter will now be considered on December 21.

Case Title: M/S KRISHNA TRADING COMPANY v. UNION OF INDIA & ORS.

Click Here To Read Order