DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, SAHIBZADA AJIT SINGH NAGAR (MOHALI)

Consumer Complaint No.204 of 2019

                                                Date of institution:  21.02.2019                                              Date of decision   :  03.06.2019

Parneet Kaur daughter of Harkewal Singh, resident of # 1654, Housefed 2 Society, Sector 79, SAS Nagar, Mohali, Punjab.

…….Complainant

Versus

Brand Factory (A Division of FLFL) Cosmo Plaza, NH-22, Ambala Chandigarh Highway, Opposite Wallmart,  Near Park Plaza Hotel, Zirakpur, SAS Nagar Mohali, Punjab  through its Manager or Authorised Representative

                                                      ……..Opposite Party  

Complaint under Section 12 of

the Consumer Protection Act.

Quorum:   Shri G.K. Dhir, President,

                Mrs. Natasha Chopra, Member.

Present:    Shri Harpreet Saini, counsel for the complainant.

                OP Ex-parte.

Order by :-  Shri G.K. Dhir, President.

Order

               Complainant purchased one product on 04.11.2018 from OP having MRP of Rs.399/- inclusive of all taxes. After giving discount of 60%, payable price was Rs.159.60 N.P., but OP charged GST of amount of Rs.7.98 N.P. on the discounted price, which practice is unfair trade practice and that is why this complaint for seeking refund of excess paid amount of Rs.7.98 N.P. with interest @ 18% per annum. Compensation for mental, physical and harassment of Rs.10,000/- and litigation expenses of Rs.10,000/- more claimed alongwith interest @ 18% per annum.

2.             OP is exparte in this case.

3.             As per latest guidelines of Hon’ble State Consumer Disputes Redressal Commission Punjab, Chandigarh, documents alongwith the affidavit submitted by complainant accepted. Complainant besides submitting her affidavit produced invoice Ex.C-1 and tag Ex.C-2.

4.             Written arguments not submitted, but oral arguments heard and records gone through.

5.             Perusal of tag Ex.C-2 establishes that MRP of the product is inclusive of all taxes. However, perusal of invoice Ex.C-1 shows that after giving discount of 60%, payable discounted price was Rs.159.60 N.P., but after charging GST of Rs.7.98 N.P., amount of Rs.167.58 charged from complainant. Practice of charging VAT or GST on the discounted price having MRP inclusive of all taxes has been deprecated 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 fully applicable to the facts of the present case. So practice of charging GST on the discounted price of the product having MRP inclusive of all taxes in this case certainly is unfair trade practice.

6.             As a sequel of above discussion, complaint allowed exparte with direction to OP to refund excess charged amount of Rs.7.98 N.P. with interest @ 6% per annum w.e.f. 04.11.2018 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.   Payment of amount of compensation and litigation expenses be made within 30 days from the date of receipt of certified copy of the order. Certified copies be supplied to the parties as per rules.  File be indexed and consigned to record room.

Announced

June 03, 2019

                                                                (G.K. Dhir)

                                                                President

(Mrs. Natasha Chopra)

Member