Samsonite South Asia allowed to pay profiteered amount of Rs 21.8 cr in installments, Retail News, ET Retail


In a first kind of relief due to Covid 19 pandemic, the Delhi High Court has allowed Samsonite South Asia to pay the profiteered amount of Rs 21.8 crore in equal installments, instead of paying the full amount upfront.

The court’s decision came after the travel baggage maker requested for easier terms of payment due to difficulties being faced caused by the pandemic. Travel, tourism and hospitality sectors have been among the worst hit as lockdowns across the country have forced consumers to stay indoors.

“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,” the two judge bench of Justices Manmohan and Sanjeev Narula said in an order dated July 20.

The company has paid the goods and service tax (GST) amount on the profiteered amount of Rs 3.92 crore.

The National Anti-Profiteering Authority has charged Samsonite India, makers of American Tourister travel bags, to pay up Rs 25.73 crore for continuing to charge higher goods and services tax (GST) from customers despite tax rate reduction from 28{3c1cc63dfd7b7001b61fe8b0a968a5593be5b3a2050e971c1a18ae4d0bc9124f} to 18{3c1cc63dfd7b7001b61fe8b0a968a5593be5b3a2050e971c1a18ae4d0bc9124f} in 2017.

Samsonite had been ordered to pay up within three months, and also reduce the prices of its products in accordance with the reduction in tax rate.


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