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

Consumer Complaint No.313 of 2017

                                             Date of institution:  27.04.2017                                         Date of decision   :  01.02.2018

Vikas Singh son of Mangal Singh, resident of House No.391, Ward No.15, Nagar Panchayat, Naya Gaon, Punjab.

…….Complainant

Versus

Callino London M/s. Chawla Fashion Shop No.17, Paras Down Town Mall, Zirakpur, Mohali, Punjab 140603 through its Manager or authorised representative.

……..Opposite Party

Complaint under Section 12 of

the Consumer Protection Act.

Quorum:   Shri G.K. Dhir, President,

                Shri Amrinder Singh Sidhu, Member.

                Mrs. Natasha Chopra, Member.

Present:    Shri Kriti Kumar proxy counsel

                for Shri Rahul Bedi, counsel for the complainant.

                OP Ex-parte.

Order by :-  Mrs. Natasha  Chopra.

Order

               Complainant, after visiting retail garment store of OP on 12.04.2017 purchased one product by paying Rs.632/- through retail invoice of that date. MRP of the product inclusive of all taxes was Rs.795/-. Discount of 25% on the MRP was offered. After such discount, price of the product was Rs.596.25 N.P. inclusive of all taxes. However, OP charged VAT of amount of Rs.35.75 N.P. @ 6.05% on the discounted price and that is an unfair trade practice adopted by OP due to which complainant suffered physical and mental harassment as well as agony. So complaint filed for seeking refund of excess paid amount of Rs.35.75 N.P. alongwith compensation for mental and physical harassment of Rs.15,000/- and litigation expenses of Rs.5,000/-.

2.             OP is ex-parte in this case.

3.             Complainant to prove his case tendered in evidence his affidavit Ex.CW-1/1 alongwith documents Ex.C-1 and C-2 and thereafter closed evidence.

4.             Written arguments not submitted. Oral arguments heard and records gone through.

5.             Invoice Ex.C-1 fortifies contents of affidavit Ex.CW-1/1 that complainant purchased product mentioned therein on 12.04.2017 by paying price of Rs.632/- including VAT amount of Rs.36.07 N.P.  but Rs.35.75 N.P. only claimed. Discount of Rs.198.75 N.P. was given on MRP (inclusive of all taxes) of Rs.795/- and thereafter VAT of above referred amount charged. Price tag Ex.C-2 also produced to show that MRP was Rs.795/- (inclusive of all taxes). So virtually VAT amount charged on the discounted price, despite the fact that same is not legally permissible.

6.             As per law laid down by Hon’ble National Consumer Disputes Redressal Commission, New Delhi in case 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 by Hon’ble State Consumer Disputes Redressal Commission, UT Chandigarh in case titled as M/s Aero Club Vs. Ravinder Singh Dhanju bearing First Appeal No.136 of 2017 decided on 23.05.2017, when MRP of a product includes taxes, then VAT/other taxes cannot be charged separately on the discounted price. In case VAT charged on discounted price, then same is unfair trade practice as per ratio of these cases.

7.             In this case before us also as VAT charged extra on the discounted price and as such OP adopted unfair trade practice due to which complainant entitled for refund of above charged VAT amount with interest @ 6% per annum w.e.f. the date of purchase till realisation.  Illegal charging of VAT on discounted price caused mental agony and harassment to complainant and as such he is entitled to compensation for mental harassment and agony as well as litigation expenses, but of reasonable amount, which needs be assessed by keeping in view the fact that OP has not come to contest the claim of complainant.

8.             As a sequel of above discussion, the complaint is allowed in terms that OP will refund excess charged amount of Rs.35.75 N.P. (as claimed in complaint) with interest @ 6% per annum w.e.f. 12.04.2017 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 free of cost and thereafter the file be indexed and consigned to the record room.           

Announced

February 01, 2018.

                                                                (G.K. Dhir)

                                                                President

                                                            (Amrinder Singh Sidhu)                                                                      Member

(Mrs. Natasha Chopra)

Member