DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, SAHIBZADA AJIT SINGH NAGAR (MOHALI)
Consumer Complaint No.1112 of 2017
Date of institution: 28.12.2017 Date of decision : 16.01.2019
Rahul Sahdev son of Shri Manjit Singh, resident of House No.5005/2, MHC Manimajra, Chandigarh.
…….Complainant
Versus
Yougal Sons Fashions Pvt. Ltd. Shop No.75, 1st Floor, The North Country Mall NH 21 Mohali Kharar Road, SAS Nagar Mohali Punjab through its Manager or Authorised Representative.
……..Opposite Party
Complaint under Section 12 of
the Consumer Protection Act.
Quorum: Shri G.K. Dhir, President,
Mrs. Natasha Chopra, Member.
Present: Shri Samdish, counsel for complainant.
Shri Harpreet Saini, counsel for the OP.
Order by :- Shri G.K. Dhir, President.
Order
Complainant purchased one product of MRP of Rs.105/- (inclusive of all taxes) on 15.08.2017 after paying consideration amount of Rs.77/-, despite the fact that after discount of 30%, payable price was Rs.73.50 N.P. SGST and CGST @ 2.5% each of amount of Rs.3.68 (total) charged, despite the fact that taxes not chargeable on discounted price. By claiming that OP adopted unfair trade practice, this complaint filed for seeking refund of paid amount of Rs.3.68 N.P. with interest @ 18% per annum. Compensation for mental and physical harassment of Rs.25,000/- and litigation expenses of Rs.15,000/- more claimed.
2. In reply filed by OP, facts regarding offering of discount of 30% and of charging GST are admitted. However, it is claimed that as per discount policy, OP has clearly mentioned that GST would be charged over and above the discounted price. Same fact also communicated to all the customers by putting up hoarding/promotion material. Reliance on Section 9 and 15 of Central GST Act, 2017 placed for claiming that these provisions provides about levying of taxes called integrated goods and service tax on all the interstate supplies of goods or services or both except on the supply of alcoholic liquor for human consumption. Value of supply of goods or services or both shall be the transaction value, which is the price actually got or payable for the said supply of goods or services or both. Section 15 (3) of CGST Act 2017 further provides that value of supply will not include any discount and as the charged amount is not in excess of MRP of the product and as such it is claimed that OP has not adopted any unfair trade practice. Admittedly the product in question purchased on 15.08.2017 by paying payable GST @ 5%.
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 the OP tendered in evidence affidavit Ex.OP-1/1 of Shri Manoj Sharma authorised signatory of the OP and thereafter closed evidence.
4. Written arguments not submitted by any of the parties. Oral arguments heard and records gone through.
5. It is not denied by OP in its written reply or in the affidavit of its authorised representative that MRP was inclusive of all taxes. Discount was offered on MRP of Rs.105/- is a fact admitted by OP in written reply as well as through affidavit Ex.OP-1/1 of its representative. In invoice Ex.C-1 also it is mentioned that after offering discount, GST of Rs.3.68 N.P @ 5% is charged on the discounted price. Tag Ex.C-2 shows MRP of the purchased product as Rs.105/- (inclusive of all taxes). Practice of charging GST on the discounted price having MRP inclusive of all taxes has been deprecated 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. Ratio of both these cases fully applicable to the facts of the present case. So practice of charging GST on the discounted price of the product having MRP inclusive of all taxes in this case certainly is unfair trade practice.
6. Even if GST to be charged from the buyer, despite that the terms of such practice can be changed by mutually arrived at contract through which the seller may undertake liability to pay GST on the discounted price of a product having MRP inclusive of all taxes. It was OP itself who professed through Ex.C-2 that MRP will be inclusive of all taxes and as such on the discounted price, OP by such undertaking bound to pay GST or other taxes. Complainant on representation of OP of discount offer on product having MRP inclusive of all taxes, purchased the product in question from OP and as such now OP estopped by its act and conduct from claiming that GST to be charged extra on the discounted price, especially when law on the subject referred above is to the contrary.
7. Provisions of Central GST Act 2017 exist for calculation of tax payable by a vendor to the Govt. Assessment of turnover of a trader for purpose of GST to be done under taxation provisions for collecting revenue for the State, but under the garb thereof benefit of beneficial provisions of Consumer Protection Act cannot be denied to the consumers. As OP through its open offer of MRP inclusive of all taxes projected through Ex.C-2 claimed that no amount of tax to be charged extra and as such OP cannot charge any part of GST from consumers because of its undertaking through tag Ex.C-2 to pay the tax itself. So, burden of claiming GST cannot be passed by OP on complainant.
8. As a sequel of above discussion, the complaint is allowed with direction to OP to refund excess charged amount of Rs.3.68 N.P. with interest @ 6% per annum w.e.f. 15.08.2017 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. Certified copies be supplied to the parties as per rules. File be indexed and consigned to record room.
Announced
January 16, 2019.
(G.K. Dhir)
President
(Mrs. Natasha Chopra)
Member
