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

Consumer Complaint No.189 of 2017

                                             Date of institution:  08.03.2017                                         Date of decision   :  22.02.2018

Manoj Kumar son of Late Sulekh Chand, resident of # 26, B.D. Colony, Sector 26, Chandigarh.

…….Complainant

Versus

Numero Uno Clothing Ltd., Shop No.F-41, North Country Mall, Kharar-Mohali Road, SAS Nagar, Mohali through its Proprietor/Incharge/Manager.

……..Opposite Party

Complaint under Section 12 of

the Consumer Protection Act.

Quorum:   Shri G.K. Dhir, President,

                Shri Amrinder Singh Sidhu, Member.

Present:    Shri Kulwinder Singh, counsel for the complainant.            OP Ex-parte.

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

Order

                Complainant after visiting outlet of OP on 19.02.2017 purchased Two shirts, on which MRP of Rs.1,999/- each (inclusive of all taxes) was mentioned.  40% discount was offered on MRP and the discounted price as such was Rs.2,398.80 N.P. However, OP charged Rs.145.14 N.P as VAT @ 5.50%. Charging of VAT on the discounted price alleged to be unfair trade practice. Officials of OP claimed as if they are charging this VAT on the discounted price from each and every customer as per instructions of the management. So this complaint filed for seeking refund of the extra paid amount of Rs.145.14 N.P. Compensation for mental harassment and agony of Rs.50,000/-,  but litigation expenses of Rs.33,000/- more claimed.

2.             OP is ex-parte in this case.

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

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

5.             From the contents of affidavit Ex.CW-1/1 supported by invoice Ex.C-1, it is made out that MRP of the purchased shirts was Rs.3,398/- inclusive of all taxes. The discounted price of the shirts was Rs.2,398.80 N.P.,  but VAT amount of Rs.145.14 N.P. @ 5.50%, was additionally charged. Total paid amount by complainant through invoice Ex.C-1 was Rs.2,544/-. So from this, it is obvious that complainant despite getting discount offer, had to pay the VAT amount in addition to the discounted price amount. This is despite the fact that MRP of Rs.3,398/- includes all taxes. That certainly is an unfair trade practice as per law laid down by Hon’ble National Commission and Hon’ble State Commission.

6.             In holding this view, we are fortified by law laid down by Hon’ble National Commission 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. Similar view also taken by Hon’ble State Consumer Disputes Redressal Commission, UT Chandigarh in its judgment dated 23.05.2017 titled as M/s Aero Club Vs. Ravinder Singh Dhanju bearing First Appeal No.136 of 2017. After going through ratio of these cases, it is made out that when MRP includes all taxes, then VAT/other taxes cannot be charged separately, meaning thereby that after discount, no VAT can be charged. Ratio of both these cases lays that on discounted price of the product, VAT cannot be charged and as such certainly practice of charging VAT on discounted price is unfair trade practice.  The same practice followed by OP in this case by charging VAT on the discounted price and as such certainly complainant entitled to refund of excess charged amount of Rs.145.14 N.P. with interest @ 6% per annum w.e.f. the date of  purchase namely 19.02.2017 till realisation. On account of above said act of charging VAT illegally, complainant suffered mental agony and harassment and was dragged in litigation and as such he is entitled to compensation as well as litigation expenses also.

7.             As a sequel of above discussion, the complaint is allowed with direction to the OP to refund the excess charged amount of Rs. 145.14 NP with interest @ 6 % P.A. w.e.f.  19.02.2017 till payment. Compensation for mental agony and harassment of Rs. 2,000/- and litigation expenses of Rs. 2,000/- more allowed in favour of the complainant and against the OP. Payment of these amounts of compensation and litigation cost be made within 30 days from receipt of certified copy of order.

                Since there is shortage of postal stamps in this Forum, therefore, the parties through their counsel are directed to receive free certified copy of the order by hand and it is the responsibility of the learned counsel for the parties to inform them accordingly.  This direction issued by following the principle laid down by Hon’ble  Punjab State Consumer Disputes Redressal Commission, Chandigarh in Consumer Complaint No.956 of 2017 titled as Partap Rai Sharma Vs. Greater Mohali Area Development Authority (GMADA), decided on 25.01.2018. File be indexed and consigned to record room.

Announced

February 22, 2018.

                                                                (G.K. Dhir)

                                                                President

                                                           (Amrinder Singh Sidhu)                                                                 Member