DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, SAHIBZADA AJIT SINGH NAGAR (MOHALI)
Consumer Complaint No.243 of 2017
Date of institution: 24.03.2017 Date of decision : 05.01.2018
Shiti Dutt wife of Gautam Dutt, resident of H.No.2163, Sector 21-C, Chandigarh.
…….Complainant
Vs
Adidas, Adi Sports India Pvt. Ltd., GF 001, FF-40,41,42,43,44, Cosmo Plaza, NH-22, Mohali, Zirakpur through its Proprietor/Manager/Authorised Signatory.
……..Opposite Party No.1
Adidas India Marketing Private Limited, 5th Floor, Unitech Commercial Tower-II, Sector 45, Block-B, Greenwoods City, Gurgaon-122001 Haryana, through its Proprietor/ Manager/Authorised Signatory.
……..Opposite Party No.2
Adidas India Marketing Private Limited, Office No.6, 2nd Floor, Sector-B Pocket No.7, Plot No.11, Vasant Kunj, New Delhi 110070 through its Proprietor/Manager/Authorised Signatory.
……..Opposite Party No.3
Complaint under Section 12 of
the Consumer Protection Act.
Quorum: Shri G.K. Dhir, President,
Shri Amrinder Singh Sidhu, Member
Present: Complainant in person.
Shri Manoj Lakhotia, counsel for the OPs.
Order by :- Shri G.K. Dhir, President.
Order
Complainant, after seeing the displayed advertisement of sale of OP No.1 in March 2017, purchased 3 T-shirts mentioning MRP of Rs.1,599/-; Rs.1,099/- and Rs.1,399/-. Discount of flat 60% on the price tags mentioning MRP (inclusive of all taxes) was offered. So discounted price of the purchased products was Rs.1,638.80 N.P., but OP No.1 charged VAT of Rs.99.15 N.P. @ 6.05% on this discounted price. Act of charging VAT on the discounted price alleged to be unfair trade practice as described in Section 2 (1) (r) of the Consumer Protection Act, 1986. OP No.2 and 3 are manufacturer/importer of brand Adidas, but OP No.1 is local dealer from whom complainant purchased the articles in question. Charging of VAT alleged to have caused harassment and pain to complainant and as such this complaint filed for seeking refund of excess charged amount of Rs.99.15 N.P. as VAT alongwith compensation for mental harassment and agony of Rs.50,000/-, but litigation expenses of Rs.15,000/-.
2. In reply filed by OPs jointly it is pleaded inter alia as if jurisdiction of this Forum has been wrongly invoked because disputes arising out of the transaction are subject to jurisdiction of Gurgaon only; complainant alleged to be not a consumer within the meaning of Section 2 (1) (d) of the Act. Moreover, complaint alleged to be vague, misconceived and based on baseless assumptions. Issue of charging VAT on discounted price is already sub judice before Hon’ble Supreme Court of India in SLP No.8868 of 2017 titled as M/s. Aero Club (Woodland) Vs. Rakesh Sharma. SLP in that respect has been admitted by granting leave vide orders dated 31.03.2017 by Hon’ble Supreme Court of India. OP Company has acquired good market reputation for its range of products. Complainant has failed to disclose terms and conditions of invitation of discount offer. No unfair trade practice alleged to be adopted by OPs. Complainant after application of mind accepted terms and conditions of OPs, while paying due consideration amount without any protest. Complaint has been alleged to be filed by complainant as an afterthought for harassing OPs so as to get illegal gain. A reasonable person bound to know bargain price as discounted price alongwith VAT applicable thereon. In fact, like products are ordinarily sold at a discount in the market with VAT extra charged. Purchase of products in question by complainant not denied, but other contents of the complaint are denied.
3. Complainant to prove her case tendered in evidence her affidavit Ex.CW-1/1 alongwith documents Ex.C-1 and C-2 and thereafter closed evidence.
4. Counsel for the OPs tendered in evidence affidavit of Gurpreet Mann, authorised signatory/representative of OPs Ex.OP-1/1 alongwith document Ex.OP-1 and thereafter closed evidence.
5. Written arguments submitted by complainant, but not by OPs. Oral arguments heard and records gone through.
6. Contents of complaint as well as of affidavit and invoice Ex.C-1 establishes that three T-shirts were purchased by complainant after visiting OP No.1 at Zirakpur (District Mohali) on 03.11.2017 by paying price of Rs.1,738.00 N.P. including VAT amount of Rs.99.15 N.P. @ 6.05%. MRP of the purchased products mentioned as Rs.1,599/-; Rs.1,399/- and Rs.1,099/- (inclusive of all taxes) on the tags, copies of which are produced on record as Ex.C-2. It is not disputed that discount of 60% was granted on the MRP and it is on the discounted price that VAT @ 6.05% = Rs.99.15 N.P. has been charged. That practice of charging VAT on the discounted price certainly is against the law laid down by Hon’ble National Consumer Disputes Redressal Commission, New Delhi in case titled as M/s Aero Club (Wood Land) through its Manager Vs. Rakesh Sharma bearing Revision Petition No.3477 of 2016 decided on 04.01.2017 as well as in case bearing First Appeal No.136 of 2017 titled as M/s Aero Club Vs. Ravinder Singh Dhanju decided on 23.05.2017 by Hon’ble State Consumer Disputes Redressal Commission, UT Chandigarh. Ratio of both these cases lays that when MRP is inclusive of all taxes, then VAT/other taxes cannot be charged separately, meaning thereby that on discounted price, no VAT can be charged. In the case before us, VAT has been charged on the discounted price, which is not permissible as per law laid down in the above cases as well as in two cases cited in the written arguments submitted by complainant and as such certainly OP No.1, the seller, adopted unfair trade practice in doing so. As and when any unfair trade practice is adopted, then certainly action of the dealer/retailer causes mental tension and harassment to the consumer. So, complainant certainly is entitled to compensation for mental harassment and agony from OP No.1 alone because excess amount charged by OP No.1 and not by OP No.2 and 3. Refund of excess charged amount also should be done by OP No.1, who provided deficient services by charging VAT extra on the discounted price, despite the fact that such practice deprecated in the above cited cases.
7. The complainant vehemently contends that exemplary costs of more than Rs.10,000/- should be allowed so that such practice may not be followed in future by OPs or any of them. However, law prohibits unjust enrichment. After going through Para No.4 of case titled as M/s Aero Club Vs. Ravinder Singh Dhanju (supra) it is made out that in the reported case also, District Forum allowed compensation for physical and mental harassment of Rs.2,000/- but litigation expenses of Rs.1,000/-. That amount remained unchanged in appeal. VAT charged in the case before us is not too much and as such allowing of compensation for mental harassment and agony of Rs.2,000/- and litigation expenses of Rs.2,000/- more against OP No.1 only is justified because these amounts are reasonable by keeping in view monetary sufferings of the complainant, more so when interest @ 6% per annum also allowed on the excess charged amount.
8. As a sequel of above discussion, the complaint is allowed with direction to OP No.1 to refund excess charged amount of Rs.99.15 N.P. with interest @ 6% per annum w.e.f. 03.11.2017 till payment. Compensation for mental agony and harassment of Rs.2,000/- and litigation expenses of Rs.2,000/- more allowed in favour of complainant and against OP No.1. Payment of amount of compensation and litigation expenses be made within 30 days from the date of receipt of certified copy of the order. Complaint against OP No.2 and 3, manufacturer and importer, however, dismissed. Certified copies of the order be supplied to the parties free of cost and thereafter the file be indexed and consigned to the record room.
Announced
January 05, 2018.
(G.K. Dhir)
President
(Amrinder Singh Sidhu) Member
