DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, SAHIBZADA AJIT SINGH NAGAR (MOHALI)
Consumer Complaint No.226 of 2016 Date of institution: 22.03.2017 Date of decision : 14.12.2017
Kartik Sharma son of Sunil Kumar Sharma, resident of House No.942-D, Adarsh Nagar, Nayagaon, District Mohali 160103.
……..Complainant
Versus
1. Shreyash Retail Private Limited, E-29, Ring Road, South Extension-II, Opposwite Park, New Delhi, South Delhi DL 110049 IN.
2. Myntra Designs Private Ltd., AKR Tech Park B Block, Krishna Reddy Industrial Area, 7th Mile, Kudlu Gate, Bengaluru 560068.
………. Opposite Parties
Complaint under Section 12 of the
Consumer Protection Act, 1986.
Quorum
Shri Ajit Pal Singh Rajput, President
Shri Amrinder Singh Sidhu, Member Mrs. Natasha Chopra, Member.
Present: Complainant in person.
OPs exparte
ORDER
By Ajit Pal Singh Rajput, President
Complainant Kartik Sharma has filed the present complaint against the Opposite Parties (hereinafter referred to as the OPs) under Section 12 of the Consumer Protection Act. The brief facts of the complaint are as under:
2. OP No.1 is retailer and is selling its products online through OP No.2. OP No.2 in order to promote the sale of the products had offered upto70% discount on the products. The complainant purchased a casual shirt from the OPs on 26.01.2017 the MRP of which was Rs.2,995/-. The OPs offered 60% discount on this product. However, the Ops charged Rs.1260.89 from the complainant vide invoice dated 26.01.2017. On enquiry the Ops informed him that they have charged VAT/CST @ 5.250% on the discounted price. However, the OPs could not show any such notification by the Taxation Authorities favoring such practice. The officials of the OPs told him that they would not allow the complainant to buy the shirt if VAT/CST charges are not paid by him. The complainant bought the shirt by paying Rs.1260.89. The complainant sent legal notice to the OPs for refund of Rs.62.89 but no reply has been received by the complainant. Hence this complaint for giving directions to the OP to furnish any such notification or regulation favouring such practice of charging extra VAT on MRP during discount period; to refund him the extra amount of VAT/CST charged to the tune of Rs.62.89 with interest; to pay him Rs.20,000/- for harassment and mental agony Rs.15,000/- as litigation costs.
3. Notice sent to the OPs were delivered upon them on 10.06.2017. However, none appeared for them despite repeated calling and they were proceeded against ex-parte vide order dated 12.07.2017.
4. In order to prove the case, the complainant tendered in evidence his affidavit Ex.CW-1/1 and copy of bill Ex.C-1; tag Ex. C-2; e-mail Ex.C-3; legal notice Ex.C-4 and e-mail Ex.C-5.
5. The complainant has submitted that the price tag Ex.C-2 show that the price of the shirt was inclusive of all taxes. He has further submitted that the OPs at the time of issuance of invoice Ex.C-1 again charged VAT/CST to the tune of Rs.62.89 on the discounted price and this act on the part of the OPs amounts to unfair trade practice and deficiency in service.
6. After hearing the complainant and going through the pleadings, evidence and the written as well as oral submissions, it is established from the material placed on record i.e. tag Ex.C-2 that the price of the shirt was inclusive of all taxes. However, the OPs again charged VAT/CST to the tune of Rs.62.89 while issuing invoice Ex.C-1. The OPs vide e-mail Ex.C-3 have stated that Myntra does not charge VAT to customer over MRP as MRP is Maximum Retail Price. Thus, as per the own admission of the OPs, the charging of VAT/CST on the discounted price is not justified. The OPs have not appeared before this Forum despite service of notice. The whole purpose of pleadings is to give fair notice to each party of what the opponent’s case is and to ascertain with precision the point(s) on which the parties argue and those on which they differ. The purpose is to eradicate irrelevancy. The complaint is a concise statement of facts and if no reply is filed to the complaint, the averments made therein are deemed to have been admitted. No amount of evidence can be looked into upon a plea, which was never put forward in pleadings. As such, the evidence adduced by the complainant remains unrebutted.
7. We are fortified by the decision of 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 wherein it has been held that charging of VAT on the discounted price is unfair trade practice. A similar question arose for determination before the Hon’ble State Consumer Disputes Redressal Commission, UT Chandigarh in First Appeal No.210 of 2015 decided on 01.09.2015 in case titled as Shoppers Stop and others Vs. Jashan Preet Singh Gill and others in which it was held that the OPs cannot charge VAT on the discounted price where the MRP of the product is inclusive of all taxes
8. Accordingly, in view of our aforesaid discussion and the case law, we find that charging of taxes on the discounted price by the OPs is unfair trade practice and deficiency in service. Hence we direct the OPs to refund to the complainant Rs.62.89 (Rs. Sixty Two and paisa eighty nine only) i.e. excess charges of VAT/CST from the complainant at the time of issuance of bill; and to pay him a lump sum amount of Rs.10,000/- (Rs. Ten Thousand only) for mental agony, harassment and costs of litigation. The present complaint stands allowed accordingly.
The OPs are further directed to comply with the order of this Forum within 30 days from the date of receipt of this order failing which the amount of compensation shall carry interest @ 12% per annum from the date of decision till actual payment.
The arguments on the complaint were heard and the order was reserved. Now the order be communicated to the parties. Copy of the order be sent to the parties free of cost and thereafter the file be consigned to the record room.
Pronounced
Dated: 14.12.2017
(A.P.S.Rajput)
President
(Amrinder Singh Sidhu)
Member
(Mrs. Natasha Chopra)
Member
