Chandigarh

DF-I

CC/851/2016

Veena Rani - Complainant(s)

Versus

Chawala Fashion Elante Mall - Opp.Party(s)

Jagan Nath Bhandari

15 Feb 2017

ORDER

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-I, U.T. CHANDIGARH

============

Consumer Complaint  No	:	CC/851/2016
Date  of  Institution	:	22/09/2016
Date   of   Decision	:	15/02/2017

 

 

 

 

 

Veena Rani D/o Sh. Ram Udgar, resident of H.No. 12, Block-A, Janta Nagar, Naya Gaon, Mohali, SAS Nagar.

 

……… Complainant.

 

Versus

 

Chawla Fashion Elante Mall, Shop No. 223, 2^nd Floor, Elante Industrial, Phase-I, Chandigarh, through its Sales Manager/ Proprietor.

……. Opposite Party

 

BEFORE:   SH. S.S. PANESAR             PRESIDENT

          SH. S.K. SARDANA             MEMBER

 

For Complainant	:	Sh. Simranjeet Singh Sidhu, Proxy Counsel for Sh. Jagan Nath Bhandari, Advocate.
For Opposite Party	:	Ex-parte.

 

PER S.K. SARDANA, MEMBER

 

          Put in brief, the facts of the case are that on 27.05.2016, the complainant visited the outlet of the Opposite Party. In order to promote the sale of its merchandise, the Opposite Party had offered flat 40% discount on MRP. The complainant purchased two Apparels from the Opposite Party which was having MRP of Rs.649/- and 1599/- respectively. The Opposite Party demanded an amount of Rs.1424/- from the Complainant, which included Rs.67.94/- as VAT @ 5% (Cash Memo Annexure C-1). It has been alleged that the complainant raised objection relating to charging of extra VAT, as the cost of the Apparels was inclusive of all taxes and VAT had already been added to the said cost, but, the officials/ employees of the Opposite Party did not agree. The complainant has averred that the Opposite Party has adopted unfair trade practice by charging extra VAT from her. Hence, alleging the aforesaid act & conduct of the Opposite Party as deficiency in service and unfair trade practice, the Complainant has filed the present Complaint.

 

2.      Notice of the complaint was sent to Opposite Party seeking its version of the case. However, nobody appeared on behalf of Opposite Party despite service, therefore, it was proceeded ex-parte.

 

3.      Complainant led evidence.

 

4.      We have heard the learned counsel for the Complainant and have also perused the record.   

 

5.      The case of the Complainant is that she was charged extra VAT @5% for the Apparels with MRP of Rs.649/- and Rs.1599/- respectively (which was inclusive of all taxes) after giving a discount of 40% respectively.

 

6.      Significantly, the Opposite Party did not appear to contest the claim of the complainant and preferred to proceed against ex-parte. This act of the Opposite Party draws an adverse inference against it. The non-appearance of the Opposite Party shows that it has nothing to say in its defence against the allegations made by the complainant. Therefore, the assertions of the complainant go unrebutted & uncontroverted.

 

7.      Now, the sole question which survives for determination is whether the MRP includes all taxes including VAT and whether after discount VAT can be charged or not?  

 

8.      After giving our thoughtful consideration, we are of the considered opinion that no one can charge more than the MRP and MRP includes all taxes including VAT/other taxes. Importantly, when MRP is including all taxes then VAT/other taxes cannot be charged separately. Meaning thereby that MRP includes VAT and after discount no VAT can be charged, so on discounted product also VAT cannot be charged if VAT is included in MRP. 

 

9.      At any rate, if the Opposite Party has offered discount of 40%, for the Apparels purchased by the Complainant/Customer, then the Opposite Party is bound to sell the Apparels after discount. Though Opposite Party had offered 40% discount on the Apparels in question, still it charged 5% extra VAT on discounted price. When, once MRP is inclusive of all taxes, charging of 5% VAT or tax, is certainly against the trade practice. Here we are fortified by the similar view taken by the Hon’ble State Consumer Disputes Redressal Commission, Bangalore, in Appeal No. 3723 of 2011, titled as “The Branch Manager, M/s Shirt Palace Branch, Black Bird Showroom Vs. Chandru H.C.”, decided on 16.01.2014.

 

10.      A similar question arose for determination before the Hon’ble State Consumer Disputes Redressal Commission, U.T. Chandigarh in First Appeal No. 210 of 2015, decided on 01.09.2015 in case titled as “Shoppers Stop and others Versus Jashan Preet Singh Gill and Others”, wherein it has been held that no one can charge more than the MRP and MRP includes all taxes including VAT/other taxes. When MRP is including all taxes then VAT/other taxes cannot be charged separately.

 

11.      The ratio of the aforecited judicial pronouncements is squarely applicable to the present lis. Therefore, the act of the Opposite Party in charging VAT on discounted product, clearly proves deficiency in service on its part, which certainly caused immense mental and physical harassment to the Complainant. 

 

12.      For the reasons recorded above, the present complaint of the Complainant deserves to succeed against the Opposite Party, and the same is allowed. The Opposite Party is directed:-

 

[a]  To refund excess charged VAT of Rs.67.94/- to the Complainant  

[b]  Pay Rs.2,000/- as compensation on account of deficiency in service and causing mental and physical harassment to the Complainant; 

[c] Pay Rs.1,000/- towards costs of litigation;

 

13.      The above said order shall be complied within 30 days of its receipt by the Opposite Party; thereafter, Opposite Party shall be liable for an interest @12% per annum on the amounts mentioned in sub-paras [a] & [b] above from the date of institution of this Complaint, till it is paid, apart from costs of litigation mentioned in sub-para [c] above. 

 

14.      Certified copy of this order be communicated to the parties, free of charge. After compliance file be consigned to record room.

Announced

15^th FEBRUARY,2017                                           

Sd/-

(S.S. PANESAR)

       PRESIDENT

 

Sd/-

(S.K. SARDANA)

       MEMBER

 “Dutt”