Tamil Nadu

South Chennai

88/2008

Poonamchand - Complainant(s)

Versus

ICICI Bank Ltd and another - Opp.Party(s)

Om sai Ram

06 Sep 2017

ORDER

                                                                        Date of Filing :  30.11.2007

                                                                        Date of Order :  06.09.2017

DISTRICT CONSUMER DISPUTE REDRESSAL FORUM, CHENNAI (SOUTH)

     2^nd Floor, Frazer Bridge Road, V.O.C. Nagar, Park Town, Chennai-3

PRESENT: THIRU. M.MONY, B.Sc., L.L.B. M.L.,                     : PRESIDENT            

                  TMT. K.AMALA, M.A. L.L.B.,                                 : MEMBER I

             DR. T.PAUL RAJASEKARAN, M.A ,D.Min.PGDHRDI, AIII,BCS : MEMBER II

C.C.NO.88/2008

WEDNESDAY THIS 6^TH DAY OF SEPTEMBER 2017

 

Mr. Poonam Chand,

Shree Finance,

33, General Muthiah Street,

Suit No.13 and 14, 2^nd Floor,

Sowcarpet,

Chennai 600 079,                                               .. Complainant

 

                                        ..Vs..

 

1.  The ICICI Bank Ltd.,

Grievances Redressal Officer,

Mohad Lilyas Khan Estate,

3^rd Floor, Above Music World,

Road, No.1, Banjara hills,

Hyderabad 500 034.

 

2.  The Manager,

Credit Card Operation,

ICICI Bank Limited,

No.46, Gandhi Mandapam Road,

Kottupuram, Chennai 600 085.                      .. Opposite parties.

 

Counsel for Complainant             :    M/s. Om Sai Ram      

Counsel for opposite parties        :    M/s. PL. Narayanan & another        

ORDER

THIRU. M. MONY, PRESIDENT

          This complaint has been filed by the complainant against the opposite parties  under section 12 of the Consumer Protection Act 1986 seeking direction to pay a sum of Rs.3,638.73 towards service taxes collected on EMI loan interest and also to pay a sum of Rs.50,000/- towards compensation for mental agony to the complainant.

1. The averment of the complaint in brief are as follows:

        The complainant submit that he has availed a personal loan of Rs.86,000/- and Rs.3,74,000/- on two occasions  and promptly making repayment.  The complainant further state that the opposite party without any reason collected service tax on EMI loan interest which is reflected in the statement of account dated 9.5.2007 and 9.6.2007 respectively.   Accordingly the complainant sent a letter dated 24.4.2007 and 18.5.2007 for seeking clarification;  even then the opposite party continued to levy service tax on EMI interest.   Hence the complainant  issued legal notice to the opposite parties on 23.7.2007 and called upon the opposite parties to desist from collecting service tax on EMI Interest and also to rectify the mistakes committed by the opposite parties by crediting the amount to his account within thirty day from the date of receipt of legal notice.      As such the act of the opposite parties is amount to deficiency in service which caused mental agony and hardship to the complainant.  Hence the complaint is filed. 

2. The brief averments in Written Version of  the opposite parties 1 & 2 and adopted by the opposite party-3   are as follows:

        The opposite parties denies each and every allegation except those that are specifically admitted herein.   The opposite parties submit that the complainant is a private financier and money lender.  He has availed the loans of Rs.86,000/- and Rs.3,74,000/- for the purpose of his money lending business.     The opposite parties submit that he has availed the services of the credit card for commercial purpose and therefore is not a consumer under the Consumer Protection Act.     The opposite parties further state that  the Service tax is levied in the complainant’s credit card account every month only as per Law.  By not paying the service tax the complainant has only committed default and has been rendered as a defaulter.  There is no question of crediting the amount debited towards service tax.   The service tax on services provided in respect of credit card is applicable w.e.f. July 16,2001 under the category Banking and other financial services.  It has been clarified by the Central Board of Excise and Customs (CBEC) vide para-2.2.2. in letter F.No.BII/1/2000-TRU, dated July 9, 2001 to the effect that all charges on credit card including interest are subject to service tax.  In view of this clarification all charges including interest in respect of credit card is subject to service tax.  Hence there is no deficiency in service on the part of the opposite parties.  Therefore this complaint is liable to be dismissed.

3.      In order to prove the averments of the complaint, the complainant had filed proof affidavit as his evidence and documents Ex.A1 to Ex.A8 marked.  Proof affidavit of opposite parties  filed and Ex.B1 marked on the side of the opposite parties. 

 

4.   The point for the consideration is:  

1. Whether the complainant is entitled to a sum of Rs.3,638.73 collected by the opposite party towards refund of service taxes  as prayed for?

 

2. Whether the complainant is entitled to a sum of Rs.50,000/- towards compensation for mental agony with cost as prayed for ?

 

5.  POINTS 1 & 2

        Heard both sides.   Perused the records.   Admittedly the complainant is a credit card holder of the opposite party bank.   The learned counsel for the complainant contended that he has availed a personal loan of Rs.86,000/- and Rs.3,74,000/- on two occasions  and promptly making repayment.  The learned counsel for the complainant further contended that the opposite party without any reason collected service tax on EMI loan interest which is reflected in the statement of account dated 9.5.2007 and 9.6.2007 respectively.   The complainant sent a letter dated 24.4.2007 and 18.5.2007 for seeking clarification;  even then the opposite party continued to levy service tax on EMI interest and arbitrarily collected in full installments of Rs.2293.33 towards service tax.   Hence the complainant was constrained to issue legal notice Ex.A6 on 23.7.2007.  As per Ex.A8 G.O. Letter No.C.No.IV/16/57/07-STC dated 17.7.2007 any loan availed by a customer is not liable for service tax on interest.   The complainant is claiming a sum of Rs.3,638.73 towards service tax collected by the opposite party and also a sum of Rs.50,000/- towards mental agony with cost.

6.     The learned counsel for the opposite parties contended that the complainant is a money lender has availed credit card facility to the tune of Rs.86,000/- and Rs.3,74,000/-.   But the opposite parties have not proved the allegation that the complainant is a money lender. Equally the opposite parties have not proved that the complainant having credit card facility of Rs.86,000/- and Rs.3,74,000/-.   On the other hand the complainant specifically pleaded that the he has availed personal loan of Rs.86,000/- and Rs.3,74,000/-.  Further the learned counsel for the opposite party contended that all the credit card facilities are liable for service tax.  As per Ex.B1 G.O.No.F.No.B-11/1/2001-TRU, dated 9.7.2001  the complainant is liable to pay service tax.   But on a careful perusal of the entire records service tax on EMI cannot be collected much less the service tax on loan cannot be collected as per Ex.A6.   Further the learned counsel for the opposite parties contended that the compensation claimed by the complainant is exorbitant.  Considering the facts and circumstances of the case this Forum is of the considered view that the opposite parties 1 & 2 are jointly and severally liable to refund a sum of Rs.3,638.73 towards service taxes collected on EMI loan interest and also pay compensation of Rs.10,000/- and cost of Rs.3,000/-  and the points are answered accordingly.   

In the result, the complaint is allowed in part.  The opposite parties 1 & 2 are jointly and severally liable to refund a sum of Rs.3,638.73 (Rupees Three thousand six hundred and thirty eight and seventy three paisa only) towards service taxes collected on EMI loan interest and also pay compensation of Rs.10,000/- (Rupees ten thousand only) and cost of Rs.3,000/- (Rupees three thousand only) to the complainant. 

The above amounts shall be payable within six weeks from the date of receipt of the copy of the order, failing which, the said amounts shall carry interest at the rate of 9% p.a till the date of payment.        

          Dictated by the President to the Assistant, taken down, transcribed and computerized by her, corrected by the President and pronounced by us in the open Forum on this the  6^th    day  of  September  2017.  

 

MEMBER-I                        MEMBER-II                             PRESIDENT.

Complainants” side documents:

 

Ex.A1- 26.2.2007  - Copy of Amortization Schedule.

Ex.A2- 9.5.2007    - Copy of ICICI Bank Statement.

Ex.A3- 9.6.2007    - Copy of ICICI Bank Statement.

Ex.A4-         -       - Copy of saving Pass book.

Ex.A5-         -       - Copy of Complainant Bank Statement.

Ex.A6- 24.7.2007  - Copy of Legal Notice.

Ex.A7- 7.8.2007    - Copy of Ack. Card.

Ex.A8 – 17.7.2007          - Copy of letter from the Commissioner of Service Tax.

Opposite parties’ side document: -  

Ex.B1- 9.7.2001    - Copy of Govt. of India Circular.

 

MEMBER-I                        MEMBER-II                             PRESIDENT.