DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, SAHIBZADA AJIT SINGH NAGAR (MOHALI)
Consumer Complaint No.476 of 2017
Date of institution: 10.07.2017 Date of decision : 04.01.2018
Umang Goyal son of Shri Ajay Kumar Goyal, resident of House No.4509, Bank Bazar, District Bathinda, Punjab 151001.
…….Complainant
Vs
Spykar Lifestyles (Black Tie Clothing), Spykar Lifestyles – Black Tie Clothing- Shop No.35, 1st Floor, North Country Mall, NH 21, Mohali Kharar Road, District, Mohali 140301 through its authorised representative.
……..Opposite Party
Complaint under Section 12 of
the Consumer Protection Act.
Quorum: Shri G.K. Dhir, President,
Shri Amrinder Singh Sidhu, Member
Present: Complainant in person.
OP ex-parte
Order by :- Shri G.K. Dhir, President.
Order
Complainant purchased a shirt for an amount of Rs.1,059.44 N.P. from OP vide retail invoice No.SL-00262 dated 12.06.2017 by making payment through his debit card. Discount of 50% was given on MRP of Rs.1,999/- (inclusive of all taxes as printed on the price tag), but despite that amount of Rs.60.44 N.P. charged as VAT on the discounted price @ 6.05%. That practice of charging VAT on discounted price alleged to be unfair trade practice and that is why this complaint filed for seeking refund of amount of Rs.60.44 N.P. alongwith interest @ 12% per annum. Compensation for mental harassment, mental agony and inconvenience of Rs.50,000/- and litigation expenses of Rs.25,000/- 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 documents Ex.C-1 to C-3 and thereafter closed evidence.
4. Written arguments not submitted. Oral arguments heard and records gone through.
5. Statement given by complainant through affidavit Ex.CW-1/1 alongwith contents of invoice Ex.C-1 and the debit card transaction slip Ex.C-2 establishes that complainant paid Rs.1,059.44 N.P. to OP at the time of purchase of shirt on 12.06.2017. Ex.C-3 is copy of price tag, which shows as if MRP of purchased product is Rs.1,999/- (inclusive of all taxes). After going through invoice Ex.C-1 it is made out that on MRP of Rs.1,999/-, discount of Rs.1,000/- was given for charging Rs.999/- as sale price. However, VAT @ 6.05% for amount of Rs.60.44 N.P. charged on the discounted price of Rs.999/- for charging Rs.1,059.44 N.P. in all from complainant. As MRP includes VAT and other taxes and as such levying of VAT on the discounted price certainly is an unfair trade practice. 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. 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 as 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.60.44 N.P. with interest @ 6% per annum w.e.f. the date of purchase namely 12.06.2017 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. However, keeping in view the fact that the OP has not come present for contesting the claim of complainant, it has to be held that agony of the complainant virtually stood mitigated due to non raising of contest by the OP. So quantum of compensation and litigation costs should not be exorbitant in view of these circumstances.
8. As a sequel of above discussion, the complaint is allowed with direction to the OP to refund excess charged amount of Rs.60.44 N.P. with interest @ 6% per annum w.e.f. 12.06.2017 till payment. Compensation for mental agony and harassment of Rs.2,500/- and litigation expenses of Rs.2,000/- more allowed in favour of complainant and against OP. 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 free of cost and thereafter the file be indexed and consigned to the record room.
Announced
January 05, 2018.
(G.K. Dhir)
President
(Amrinder Singh Sidhu) Member
