DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION-II
Udyog Sadan, C-22 & 23, Qutub Institutional Area
(Behind Qutub Hotel), New Delhi- 110016
Case No.186/2022
Ashish Agarwal
E-101, Maple Tree, New Jail Road, Bhopal-462038
….Complainant
Versus
Bagga Link Motors Ltd.
136, Bhisham Pitamah Marg, Kotla Mubarkapur, Opposite Defence Colony, New Delhi-110003
State Transport Department
Government of National Capital Territory of Delhi
State Transport Department
Zonal Office South Delhi, DDA Market
Sheikh Sarai Phase-II, New Delhi-110017
….Opposite Party
Date of Institution : 13.07.2022
Date of Order : 08.07.2024
Coram:
Ms. Monika A Srivastava, President
Ms. Kiran Kaushal, Member
ORDER
Member: Ms. Kiran Kaushal
1. Invoking the jurisdiction of this Commission, complainant has prayed for directions to the Transport Department, Govt. of NCT Delhi (hereinafter referred to as OP-2).
2. It is prayed that OP-2 be directed to refund the excess amount charged along with the applicable interest; to pay the litigation charges; to direct OP-2 that such excess charges should not be levied on any eligible person.
3. It is stated that the complainant purchased a car through Canteen Stores Department (CSD). The rate of the car as per CSD purchased Order No.27982 dated 03.10.2022 and Bagga Link Motors Ltd(OP-1) invoice dated 06.11.2020 is Rs.6,83,221/-. The Ex-showroom price of the car was Rs.9,90,670/- after adding a tax of 45% and being an army personnel, the amount actually paid by the complainant is Rs.8,98,436/- including tax of 31.5%. It is stated that both the amounts mentioned in the purchase order i.e Rs.9,90,670/- and Rs.8,98,436/- are well below Rs.10,00,000/- .
4. It is stated that the rates for one time Motor Vehicle Tax as per Part B of Schedule 1 referred to in Section 4 Sub-Section 2(b) of Delhi Motor Vehicle’s Taxation Act, 1962 (as amended) are 7% of the cost price for vehicles costing from Rs.6,00,000/- to Rs.10,00,000/- and 10% of the cost price for vehicles costing above Rs.10,00,000/-.
5. It is next stated that as per the explanation in the Delhi Motor Vehicle’s Taxation Act, 1962, ‘cost price’ of Motor Vehicles manufactured in India is the basic manufacturing cost (Rs.6,83,221/- in this case) and Excise Duty + Sales Tax without allowing any cash trade discount.
6. It is further stated that CSD price is neither cash nor trade discount, it is a service benefit available only to the eligible personnel. It is next stated that the complainant has paid an amount of Rs.8,98,436/- including tax, towards the cost of the vehicle which is well below Rs.10,00,000/- hence, should attract a tax of 7% only. Accordingly, the Motor Vehicle Tax Liability of the complainant would amount to Rs.62,890.5/-. However, it is stated that the complainant has been charged one time Motor Vehicle Tax of Rs.1,01,300/- which is Rs.38,409.5/- more than the liability.
7. It is stated that complainant vide various modes of communication informed OP regarding excess tax being charged but did not receive any positive response from OP. Hence, the instant complaint.
8. OP was given an opportunity to contest the case, however as the reply of OP was not filed within the stipulated period, right to file reply of OP was closed vide order dated 11.11.2022. Evidence by way of affidavit has been filed on behalf of complainant. Written submissions have been filed on behalf of both the parties. Submissions made by the complainant are heard. Material placed on record is perused.
9. The only point of consideration before this Commission is whether the complainant was charged the Motor Vehicle Tax in excess to what he was liable to pay.
10. Before, we go to the merits of the case, it is pertinent to decide whether the complainant is a ‘Consumer’ under Consumer Protection Act, 2019.
As per the Act -
‘consumer’ means any person who—
(i) buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment, and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of deferred payment when such use is made with the approval of such person, but does not include a person who obtains such goods for resale or for any commercial purpose; or
(ii) hires or avails of any services for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment, and includes any beneficiary of such services other than the person who hires or avails of the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first mentioned person;
11. Complainant has alleged deficiency of service qua OP-1 stating that he has been charged higher tax than what he was supposed to pay.
12. It is noticed that the complainant has sought relief from OP-1 but has not been able to show any consideration paid to OP-1 as payment of tax cannot be taken as consideration . Since, no consideration was paid to OP-1, we are of the view that complainant is not a ‘consumer’ as per the Consumer Protection Act, 2019.
13. Now, on the merits of the case -
From the documents placed before us, it is noticed from exhibit CW-1/5 that the sale amount of the vehicle is Rs.10,13,000/-. The Motor Vehicle Tax is charged on the basis of the sale amount of the vehicle which is duly filled by the manufacture of the vehicle. As per Part B of Schedule 1 referred to in Section 4 Sub-Section 2(b) of Delhi Motor Vehicle’s Taxation Act, 1962 (as amended) 10% of the cost price is to be charged for four wheeled vehicles and more than four wheeled vehicles, costing above Rs.10,00,000/-. Since, the manufacturer in the Vahan Portal had stated the sale amount of the vehicle to be Rs.10,13,000/-, the tax charged from the complainant was @10%.
14. Moreover, the fact that neither OP-1 nor OP-2 has any power or authority to make alteration in the cost/sale amount of the vehicle as homologation data of any vehicle is fetched automatically through the portal as soon as the dealer completes the process of registration of the vehicle, OPs are bound to charge as per the Motor Vehicles Tax Act.
15. Admittedly, as per the explanation in the Delhi Motor Vehicle’s Taxation Act, 1962, ‘cost price’ of Motor Vehicles manufactured in India is the basic manufacturing cost + Excise Duty + Sales Tax without allowing any cash trade discount. It is a fact that the complainant is eligible to avail service benefits and it was for his benefit that the vehicle which has the sale price of Rs. 10,13,000/- and the Ex-showroom price Rs.9,90,670/- was made available to the complainant for an amount of Rs.8,98,436/-. This Commission has not lost sight of the fact that tax liability which has been fixed and determined under the Motor Vehicle Tax Act is that for every citizen of the country.
16. In light of the discussion above, this Commission is of the opinion that OPs have rightly deducted the tax amount from the complainant. Hence, the complaint fails on both accounts as the complainant has failed to establish that he is a ‘Consumer’ and also on the ground of merits. Hence the complaint is dismissed.
Parties be provided copy of the judgment as per rules. File be consigned to the record room. Order be uploaded on the website.
