DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, SAHIBZADA AJIT SINGH NAGAR (MOHALI)
Consumer Complaint No.752 of 2017
Date of institution: 14.09.2017 Date of decision : 14.03.2018
Kulwinder Singh son of Late Shri Charanjit Singh, resident of Kothi No.86, Phase-6, Mohali.
…….Complainant
Vs
Yougal Sons Fashions Pvt. Ltd. Shop no.75, 1st Floor, The North Country Mall, NH-21, Kharar, 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
Mrs. Natasha Chopra, Member.
Present: Complainant in person.
Shri Harpreet Saini, counsel for the OP.
Order by :- Shri G.K. Dhir, President.
Order
Complainant on 14.08.2017 visited outlet of OP in North Country Mall situate on Kharar Mohali road for purchasing Lower having MRP of Rs.890/- (inclusive of all taxes) mentioned thereon. Discount on this product was given and after discount the price of the product was Rs.445/- (as shown in Ex.C-1 the invoice). On discounted price of Rs.445/-, GST @ 5% of worth of Rs.22.26 N.P. charged against rules and regulations for adopting unfair trade practice. Complainant paid Rs.467/- inclusive of collected GST. In view of adoption of unfair trade practice by OP, prayer made for directing OP to refund the excess charged amount of Rs.22.26 N.P. with interest. Compensation for mental harassment and agony of Rs.50,000/- and litigation expenses of Rs.33,000/- more claimed.
2. In reply filed by OP, it is claimed that as per discount policy, OP clearly mentioned that GST would be charged over and above the discounted price. That fact was communicated to the customer before purchase and even by making mention of the same on all hoardings/promotion material used for communicating discount scheme to the customers. Admittedly on MRP of Rs.890/- discount of 50% was offered and discounted price was Rs.445/-, on which CGST and SGST of Rs.22.26 N.P. charged. It is claimed that applicable CGST and SGST on readymade garments is at rate of 2.5% each. Section 9 and 15 of Central GST Act, 2017 provides for charging of Central Goods and Service tax as well as State Goods and Service Tax. By following these provisions, CGST and SGST @ 2.5% each charged. Section 15 (2) of Central Goods and Service Tax, 2017 provides that value of supply will include any tax, duties, cesses etc. leviable under the law for the time being in force. It is claimed that GST charged is well within purview of law and no illegality committed and nor any unfair trade practice adopted, more so when the customer was made aware of the discount offer by expressly stating that GST will be charged over and above the discounted value. Purchase of the product in question admitted, but other averments of the complaint denied.
3. Complainant to prove his case tendered in evidence his affidavit Ex.CW-1/1 alongwith documents Ex.C-1 and Ex.C-2 and thereafter closed evidence. On the other hand, counsel for OP tendered in evidence affidavit Ex.OP-1/1 of Shri Manoj Sharma, authorised representative of OP and thereafter closed evidence.
4. Written arguments not submitted by any of the parties. Oral arguments heard and records gone through.
5. Undisputedly the garment in question having MRP of Rs.890/- was purchased by complainant from OP. On the tag, copy of which is produced on record as Ex.C-2, it is specifically mentioned that MRP of Rs.890/- is inclusive of all taxes. After giving discount of 50%, CGST and SGST of Rs.11.13 N.P. + Rs.11.13 N.P. charged for claiming total amount of Rs.467/-. As MRP was inclusive of all taxes and as such OP could not have charged any other tax on the discounted price, even after coming into force of provisions of Central Goods and Service Tax Act, 2017 or the State Goods and Service Tax Act because as per law laid down by Hon’ble National Consumer Disputes Redressal Commission, New Delhi and Hon’ble UT State Consumer Disputes Redressal Commission, Chandigarh, when a product has MRP inclusive of all taxes, then in case offer of discount is given on the MRP, then all taxes must be included in the discounted price.
6. Practice of charging VAT on the discounted price has been held to be 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 adopted unfair trade practice by charging CGST and SGST 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.
7. As a sequel of above discussion, the complaint is allowed with direction to OP to refund excess charged amount of Rs.22.26 N.P. with interest @ 6% per annum w.e.f. 14.08.2017 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. Payment of amount of compensation and litigation expenses be made within 30 days from the date of receipt of certified copy of the 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 will be 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. Certified copies of the order be supplied to the parties free of costs as per rules. File be indexed and consigned to record room.
Announced
March 14, 2018.
(G.K. Dhir)
President
(Amrinder Singh Sidhu) Member
(Mrs. Natasha Chopra)
Member
