DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, SAHIBZADA AJIT SINGH NAGAR (MOHALI)
Consumer Complaint No.793 of 2018
Date of institution: 01.08.2018 Date of decision : 14.12.2018
Rahul son of Satpal, resident of House No.711, BRS Nagar, E Block, Ludhiana.
…….Complainant
Versus
Broadway Mega Outlet Store, Ground Floor, Cosmo Plaza Mall, Chandigarh Ambala Highway, Zirakpur, Punjab through its Manager or Authorised Representative.
……..Opposite Party No.1
Arvind Lifestyle Brands Ltd. 8th Floor Du Parc Trinity 17 MG Road, Bengaluru 560001 through its Manager or Authorised Representative.
……..Opposite Party No.2
Complaint under Section 12 of
the Consumer Protection Act.
Quorum: Shri G.K. Dhir, President,
Shri Amrinder Singh Sidhu, Member.
Ms. Natasha Chopra, Member.
Present: Shri N.S. Jagdeva proxy, counsel for the complainant.
OPs Ex-parte.
Order by :- Shri G.K. Dhir, President.
Order
Complainant purchased one product on 16.06.2017 after paying Rs.1209/-. That product was having MRP of Rs.1,899/- inclusive of all taxes. After discount of 40%, price of the product came to Rs.1,139.40 N.P. inclusive of all taxes, but VAT amount of Rs.68.93 N.P. @ 6.05% charged on the discounted price, which is alleged to be unfair trade practice resulting in mental, physical and financial sufferings of complainant. So complaint filed for direction to OPs to refund the excess charged amount of Rs.68.93N.P. with interest @ 18% per annum. Compensation for mental agony and harassment of Rs.25,000/- and litigation expenses of Rs.15,000/- more claimed.
2. OPs are exparte in this case.
3. Complainant to prove his case tendered in evidence his affidavit Ex.CW-1/1 alongwith documents Ex.C-1 and Ex.C-2 and thereafter closed evidence.
4. Written arguments not submitted, but oral arguments heard and records gone through.
5. Perusal of Ex.C-2 shows that price of the product (T-shirt) was Rs.1,899/- inclusive of all taxes. Same fact even mentioned in invoice Ex.C-1. Discount @ 40% given and thereafter VAT @ 6.05% is charged. By calculating discount @ 40% on MRP of Rs.1,899/-, it transpire as if the payable discounted price was Rs.1,139.40 N.P. However, through invoice Ex.C-1 amount of Rs.1209/- is charged including VAT @ 6.05%. As MRP was inclusive of all taxes and as such certainly complainant after discount of 40% was liable to pay Rs.1,139.40 N.P. only. So virtually VAT of Rs.68.93 N.P. charged extra from complainant because he had to pay Rs.1209/- despite the fact that payable amount was Rs.1139.40 N.P. only. Practice of charging VAT 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 VAT on the discounted price of the product having MRP inclusive of all taxes in this case certainly is unfair trade practice.
6. Purchase was made by complainant from OP No.1 and not from OP No.2 and as such liability of paying excess charged amount alongwith interest and compensation/costs is of OP No.1 and not of OP No.2. There is no privity of contract between complainant and OP No.2 and as such complaint against OP No.2 merits dismissal.
7. As a sequel of above discussion, the complaint is allowed against OP No.1 only with direction to OP No.1 to refund excess charged amount of Rs.68.93 N.P. with interest @ 6% per annum w.e.f. 16.06.2017 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. 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 of the order be supplied to the parties as per rules. File be indexed and consigned to record room.
Announced
December 14, 2018.
(G.K. Dhir)
President
(Amrinder Singh Sidhu)
Member
(Mrs. Natasha Chopra)
Member
