DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, JALANDHAR.
Complaint No.43 of 2020 Date of Instt. 28.01.2020 Date of Decision: 10.08.2021
Dipali Bagria, Resident of House No.480, New Babu Labh Singh Nagar, Jalandhar City H. O. Jalandhar-144001.
….. Complainant
Versus
- Health & Happiness Private Limited, Survey Numbers 231, 232 and 233, Soukya Road, Samethanahalli, Village Anugondanahalli Hobli, Hoakote Taluk, Banglore, Karnataka-560067, through its Authorized Representative.
2. Myntra India, Headquarters: Myntra Designs Private Limited, AKR Tech Park, 7th Mile, Kudlu Gate, Bengaluru 560068, Karnatka, India through its Authorized Representative.
..…Opposite parties
Complaint Under the Consumer Protection Act.
Before: Sh. Kuljit Singh (President) Smt. Jyotsna (Member)
Present: Smt. Leena Sehgal, Adv. Counsel for the Complainant. OP No.1 (Defence Struck Off). Sh. A. S. Sohal, Adv. Counsel for the OP No.2.
ORDER
Kuljit Singh (President)
- The present complaint has been filed by complainant against the OPs on the averments that complainant purchased a Biotique Face Wash from OPs vide invoice No.C100000000893938 dated 01.09.2019, Order No.1119135-0977988-8296064, Dated 31.08.2019, Packet ID: 0689703, Amount paid Rs.188/-. The MRP of the Biotique Face Wash was shown to be Rs.240/- which was sold to the complainant and price of Biotique Face Wash was inclusive of all taxes as per price tag on the Biotique Face Wash. A discount of Rs.80/- was given on MRP of Biotique Face Wash and after deducting the discount from the MRP and the final amount payable should have come to Rs.160/-. However, OPs charged an amount of Rs.28/- as IGST @ 18% on Rs.160/- i.e. total charged price from the complainant is Rs.188/- (Rs.160/- + Rs.28/- IGST). The payment of the said amount was paid by complainant cash to the delivery man. The MRP of any article always includes all taxes including GST so a retailer cannot charge the price over and above the same but OPs have charged an excessive amount to the tune of Rs.28/- from the complainant in an illegal manner. Lastly prayer has been made that OPs be directed to refund amount of IGST illegally charged i.e. Rs.28/- alongwith interest @ 12% per annum from the date of payment till the date of realization. Rs.25,000/- as claimed as compensation for harassment and Rs.10,000/- as litigations expenses.
- Notice of the complaint was given to the OPs, but OP No.1 after availing so many opportunities failed to file written reply and ultimately, the defence of OP No.1 struck off, vide order dated 20.04.2021. OP No.2 has filed written reply and contested the complaint by taking preliminary objections that complainant not come to this Commission with clean hands; the complainant, alongwith his family, friends and also the counsel representing the complaint, has filed more than 50 similar complaints before this Commission against OP-2; complainant is trying to misuse the provisions of Consumer Protection Act for his illegal enrichment in collaboration with his family members, friends and the counsel as well. In many such complaints, addresses of the complainant are exactly the same but the names of the complainant are different and also no identity proof has been attached any of the complaints to establish the actual identity of the complainant; Thus OP No.2 is having strong apprehension that the complainants are not genuine and even not existing in actual but the complainant has used names of imaginary person to place orders and file such high number of similar complaints. The complainant does not have any actual grievance against the OP No.2, but his actual intention is to extort money from the OP No.2 illegally. On merits, all the averments of complaint denied and prayed for dismissal of complaint.
- In order to prove their respective versions, both the parties produced on the file their respective evidence.
- Rejoinder not filed.
- We have heard the learned counsel for the respective parties and have also gone through the written arguments as submitted by both the parties as well as case file very minutely.
- From Ex.C-1 is transpired that complainant has received the article in the name of Dipali Bagria, Resident of House No.480, New Babu Labh Singh Nagar, Jalandhar City H. O. Jalandhar-144001. Further, the first point of consideration is that the amount of IGST charged by the opposite parties has not gone to the profit of the opposite parties rather the same has gone in the account of Central Government and State Government in equal share which they spent on the development of the country. In this way, the amount charged from the complainant has gone to the account of the Government and there is no interest of the opposite parties for charging this amount as such they have not charged this amount for their own profit.
- Secondly, the complainant filed many other similar cases before this Commission which proved that complainant frequently purchased the items from the opposite parties even after knowing the fact of extra charges on account of IGST. So, all these purchases also proved the malafide intention of the complainant to firstly purchase these items from the opposite parties and then filed several complaints against them only to extract money from the opposite parties.
- Lastly, the complainant never sent any complaint or email to the opposite parties regarding the extra charges on account of IGST and directly filed the present complaint which also shows his malafide intention as the complainant must given a chance to the opposite parties to clear their position for charging this amount. As the opposite parties charged the amount from the complainant as shown on their online application and not charged any extra amount so there is no deficiency in service and unfair trade practice on the part of the opposite parties.
- As a result of our above discussion, there is no merit in the present complaint and same is dismissed. However, no order as to costs or compensation.
- Copies of the order be sent to the parties, as permissible, under the rules. This complaint could not be decided within stipulated time frame due to rush of work.
- File be indexed and consigned to the record room after due compliance.
Announced in open Commission
10th of August 2021
Kuljit Singh
(President)
Jyotsna
(Member)
DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, JALANDHAR.
Complaint No.43 of 2020 Date of Instt. 28.01.2020
Dipali Bagria, Resident of House No.480, New Babu Labh Singh Nagar, Jalandhar City H. O. Jalandhar-144001.
….. Complainant
Versus
- Health & Happiness Private Limited, Survey Numbers 231, 232 and 233, Soukya Road, Samethanahalli, Village Anugondanahalli Hobli, Hoakote Taluk, Banglore, Karnataka-560067, through its Authorized Representative.
2. Myntra India, Headquarters: Myntra Designs Private Limited, AKR Tech Park, 7th Mile, Kudlu Gate, Bengaluru 560068, Karnatka, India through its Authorized Representative.
..…Opposite parties
Complaint Under the Consumer Protection Act.
Before: Sh. Kuljit Singh (President) Smt. Jyotsna (Member)
Present: Smt. Leena Sehgal, Adv. Counsel for the Complainant. OP No.1 (Defence Struck Off). Sh. A. S. Sohal, Adv. Counsel for the OP No.2.
ORDER
JYOTSNA (MEMBER)
- I have received the above orders for my consent today wherein the above complaint has been dismissed by Hon’ble President of this commission. However with utmost and due respect to the views expressed by the Hon’ble President, I prefer to disagree with above orders for the reasons mentioned below.
- There is no need to reproduce the facts and the evidence as has already been recorded. From Ex.C-1, it is transpired that complainant has received the article in the name of Dipali Bagria, Resident of House No.480, New Babu Labh Singh Nagar, Jalandhar City H. O. Jalandhar-144001. Complainant is residing at the above address and hence falls under the jurisdiction of this commission.
- After going through the pleadings of both the parties, we find that the factum in regard to purchase of the product from the OPs vide invoice No.C100000000893938 dated 01.09.2019, Order No.1119135-0977988-8296064, Dated 31.08.2019, Packet ID: 0689703, Amount paid Rs.188/-. The MRP of the Biotique Face Wash was shown to be Rs.240/- which was sold to the complainant and price of Biotique Face Wash was inclusive of all taxes as per price tag on the Biotique Face Wash. A discount of Rs.80/- was given on MRP of Biotique Face Wash and after deducting the discount from the MRP and the final amount payable should have come to Rs.160/-. However, OPs charged an amount of Rs.28/- as IGST @ 18% on Rs.160/- i.e. total charged price from the complainant is Rs.188/- (Rs.160/- + Rs.28/- IGST). The payment of the said amount was paid by complainant cash to the delivery man.
4. The case of the complainant is not denied by the OP. Rather the OP took another plea in the Preliminary Objections that the complainant is in habit of filing such like complaint before this Forum and earlier also the complainant has filed such like complaint. The OP itself admitted that the complainant is in habit to file such like complaint against the OP. So, it means the OP is committed such like error again and again intentionally just to get recover more price of the product then printed thereon and if the complainant is aggrieved from that excess payment again and again, then he has right to file a complaint again and again rather giving this type of reply, the OP itself admitted that they are in habit to commit such like mistake against the complainant as well as general public. So, with these observations, we are of the opinion that the case of the complainant in regard to getting more price than MRP is established and it is settled law that none of the dealer, manufacturer can charge excess price than the MRP because MRP means include all taxes etc. In support of this version, we like to refer a pronouncement of Hon'ble National Commission, decided in Revision Petition No.3156 of 2016, titled as “Benetton India Pvt. Limited Vs. Ravinder Singh”. We further like to refer another pronouncement of UT State Commission, Chandigarh, decided in CC No.400/2015, decided on 14.01.2016, titled as “Shyam Sunder Sharma Vs. M/s ADI Sports etc”.
Further, as per law laid down in case titled as M/s. Aero Club (Wood Land) through its Manager Vs Rakesh Sharma in Revision Petition No.347 of 2016 decided on 04.01.2017 by Hon’ble National Consumer Disputes Redressal Commission, New Delhi as well as the law laid down in M/s. Aero Club Vs Ravinder Singh Dhanju decided in First appeal No.136 of 2017 on 23.05.2017 by Hon’ble State Consumer Disputes Redressal Commission, UT , it has been held that practice of charging GST on the discounted price of the product having MRP inclusive of all taxes is an unfair trade practice.
5. If we see the case of the complainant in the light of above judgments, then apparently, it is clearly established that MRP is inclusive of all taxes and retailer can sale any product below the MRP and cannot charge above MRP i.e. price higher than MRP, so if any charge above the MRP, then over charging is a clear cut unfair trade practice.
6. In the light of above detailed discussion, the complaint of the complainant succeeds and the same is partly accepted and accordingly, OP is directed to refund the excess price charged from the complainant i.e. Rs.28/- with interest @ 6% per annum from the date of purchase i.e. 01.09.2019 till realization and further OP is directed to pay compensation to the complainant for causing harassment, mental agony, to the tune of Rs.1000/- and litigation expenses of Rs.1000/-.
7. In view of my dissenting opinion, the present orders of the Hon’ble President are not enforceable. Therefore, seek necessary directions from the Hon’ble SCDRC, Punjab, so as to refer these orders for the opinion of another member to make this a majority order.
August 17, 2021 Jyotsna
(Member)
DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, JALANDHAR.
OPINION OF 3RD MEMBER SH. JASWANT SINGH DHILLON
In the present case the judgment was passed by the then President Sh. Kuljit Singh on 10.08.2021 dissent view was given by the Member Smt. Jyotsna on 17.08.2021. The case was then referred to Hon’ble State Consumer Disputes Redressal Commission, Punjab vide letter No.DCC/JAL/2021/1922 dated 12.10.2021, for opinion of another member to make this majority order since there was no third Member in Jalandhar at that time. Hon’ble State Consumer Disputes Redressal Commission, Punjab, vide letter No.SCDRC/PB/2021/11230 dated 29.12.2021, has now directed me to give the opinion in this case. I have gone through the file and facts of this case. From the facts, it is clear that complainant is residing at Jalandhar and delivery of goods was received in Jalandhar, therefore it falls under the jurisdiction of this Commission.
It is very much clear that I.G.S.T. has been charged over and above the MRP of the product. It is well settled law that MRP amount mentioned on the product is inclusive of all taxes. No dealer can charge any tax either G.S.T. or any other tax over and above MRP since it is already included in MRP. Charging additional tax after discount price is illegal and arbitrary and amounts to unfair trade practice and deficiency in service. The Hon’ble National Commission and many State Commissions have pronounced many judgments on this issue, which have been discussed in detail by Hon’ble Member Mrs. Jyotsna in her opinion mention above, are as under:-
M/s. Aero Club (Wood Land) through its Manager Vs. Rakesh Sharma in Revision Petition No.347 of 2016 decided on 04.01.2017 by Hon’ble National Consumer Disputes Redressal Commission, New Delhi as well as the law laid down in M/s. Aero Club Vs Ravinder Singh Dhanju decided in First appeal No.136 of 2017 on 23.05.2017 by Hon’ble State Consumer Disputes Redressal Commission, UT, it has been held that practice of charging GST on the discounted price of the product having MRP inclusive of all taxes is an unfair trade practice.
In view of the above facts, I prefer to disagree with the views expressed by the then Hon’ble President Mr.Kuljit Singh and agree with the views given by the Hon’ble Member Mrs. Jyotsna.
Therefore, by majority view the complaint of the complainant succeeds and same is partly allowed. OPs are directed to refund the excess price charged from the complainant that is Rs.28/- with interest @ 6% per annum from the date of purchase i.e. 01.09.2019 till its realization and further OPs are directed to pay compensation of Rs.1000/- for causing mental tension and harassment to the complainant and Rs.1000/- as litigation expenses. The entire compliance be made within 45 days from the date of receipt of the copy of order. This complaint could not be decided within stipulated time frame due to rush of work. Copies of the order be supplied to the parties free of cost, as per Rules. File be indexed and consigned to the record room.
Dated:24.01.2022 Jaswant Singh Dhillon Member