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

Consumer Complaint No.248 of 2017

                                         Date of institution:  24.03.2017                                                 Date of decision   :  07.03.2018

Darshan Singh son of Ajay Pal Singh, resident of House No.406, Gillco Valley, Sector 127, Kharar, Mohali.

…….Complainant

Vs

1.     Kapson-Selection 7 (Arrow) through its Owner/Proprietor, SCF-45, Phase-7, Sector 69, Mohali, Punjab 160069.

2.     Arvind Lifestyle Brands Ltd., through its Managing Director, Du Parc Trinity, 8^th Floor, 17, M.G. Road, Bangalore 560001.

……..Opposite Parties

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 Karamveer Singh, counsel for complainant.

                OP No.1 ex-parte.

                None for OP No.2.

Order by :-  Shri G.K. Dhir, President.

Order

               Complainant, after knowing about the discount offer of OPs, visited premises of OP No.1 on 22.01.2017 for purchase of three trousers, on which MRP of Rs.2,699/- each  (inclusive of all taxes) was mentioned. Retail invoice bill for amount of Rs.5,152.11 N.P. inclusive of Rs.293.91 N.P. as VAT @ 6.05% was issued, despite the fact that this VAT could not have been charged on the discounted price. That practice of charging extra VAT on the discounted MRP alleged to be an unfair trade practice and that is why this complaint for seeking refund of amount of Rs.293.91 N.P. with interest alongwith compensation for mental agony and harassment of Rs.20,000/-, but litigation expenses of Rs.15,000/-.

2.             OP No.1 is exparte in this case.  Right of OPs to file written statement was struck off on 23.06.2017.

3.             Complainant to prove his case tendered in evidence his affidavit Ex.CW-1/1 alongwith documents Ex.C-1 to Ex.C-4 and thereafter closed evidence.  Counsel for OP No.2 closed rebuttal evidence on 28.02.2018.

4.             Written arguments not submitted by the complainant but oral arguments heard and records gone through. None appeared for OP No.2 for addressing oral arguments also.

5.             Contents of complaint as well as of affidavit and invoice Ex.C-1 establishes that three trousers purchased by complainant after visiting OP No.1 on 22.01.2017 by paying price of Rs.5,152.11 N.P. including VAT amount of Rs.293.91 N.P. @ 6.05%.   MRP of each of the purchased products mentioned as Rs.2,699/- (inclusive of all taxes) on the tags, copies of which are produced on record as Ex.C-2 to C-4. It is not disputed that discount was granted on the MRP and it is on the discounted price that VAT @ 6.05% = Rs.293.91 N.P. has been charged. Practice of charging VAT on the discounted price has been held to be an unfair trade practice as per law laid down 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.  In view of this legal position, certainly OP No.1 adopted unfair trade practice by charging VAT on the discounted price, which caused mental harassment and agony to complainant, due to which he is entitled for refund of excess charged amount alongwith compensation for mental harassment and agony and also to litigation expenses.

6.             As a sequel of above discussion, the complaint is allowed with direction to OP No.1 to refund excess charged amount of Rs.293.91 N.P. with interest @ 6% per annum w.e.f. 22.01.2017 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 No.1.  Complaint against OP No.2, however, is dismissed. 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

March 07, 2018.

                                                                (G.K. Dhir)

                                                                President

                                                               (Amrinder Singh Sidhu)                                                                   Member

(Mrs. Natasha Chopra)

Member