Order dictated by:

Ms.Rachna Arora, Member

1.       Ravinder Singh complainant has brought the instant complaint under section 11 & 12 of the Consumer Protection Act, 1986 on the allegations that opposite party is retail outlet of readymade garments and the complainant purchased one readymade shirt  on 10.8.2016 vide receipt No. 0307878 of Rs. 688.79 paise. Due to sale promotion scheme opposite party sold garments on 50% discount on price . As per price tag, MRP was 1299/- inclusive of all taxes. But opposite party despite having price tag inclusive of all taxes has charged 6.05% (Rs.39.29 paise paise) tax on the shirt. The complainant made strong protest to opposite party that price tag display price inclusive of all taxes and charging of taxes on the said product was against the provisions of law. But the opposite party did not care and insisted on charging the tax in addition to the sale price. The complainant has suffered great hardship and it tantamount to gross deficiency in service and unfair trade practice on the part of the opposite party because the opposite party entitled to charge Rs. 649.50 paise for shirt after 50% discount on Rs. 1299/-. But the opposite party illegally charged Rs. 39.29  paise for VAT on discounted price of Rs. 649.50 paise. The complainant is a consumer qua the opposite party for due consideration and opposite party is deficient in rendering services, as such complainant is entitled to invoke the jurisdiction of this Forum as defined  under section  2(g)(1) of the Consumer Protection Act, 1986. The payment was made at Amritsar and cause of action has arisen in favour of the complainant against opposite party at Amritsar, therefore, this Forum has the territorial jurisdiction to try and decide the present complaint. The complainant has sought for the following reliefs vide instant complaint :

(a)     Opposite party be directed to immediately refund Rs. 39.29  paise charged excess as Tax ;

(b)     Compensation to the tune of Rs. 25000/- alongwith litigation expenses Rs. 5000/- may also be awarded to the complainant.

Hence, this complaint.

2.       Upon notice opposite party appeared and filed written version in which it was submitted that vide advertisement which clearly mentions that the discount of 50% offered with a condition written on the advertisement which clearly states condition apply and VAT will be charged extra. The complainant has bought the product at discounted price and as per the rules and provisions of Punjab Value Added Tax Act 2005, the opposite party has charged VAT on the discounted price.  That the opposite party has not charged anything above the MRP of products purchased. The complainant is well aware of the fact that the VAT will be charged extra after the discounted price as it was displayed in the advertisement. While denying and controverting other allegations, dismissal of complaint was prayed.

3.       In his bid to prove the case complainant tendered into evidence his duly sworn affidavit Ex.C-1 , copy of retail invoice Ex.C-2, copy of price tag Ex.C-3 and closed his evidence.

4.       To rebut the aforesaid evidence Sh. Anil Pandey tenderd into evidence his duly sworn affidavit Ex.OP1 and closed the evidence on behalf of the opposite party.

5.       We have heard the Ld.counsel for the complainant as well as Representative on behalf of the opposite party and have carefully gone through the record on the file.

6.       The complainant has reiterated the allegations contained in the complaint vide his affidavit Ex.C-1. The complainant has also produced on record copy of the price tag, which denotes the maximum retail price inclusive of all taxes to be Rs. 1299/- inclusive of all taxes. As such the opposite party is entitled to charge Rs. 649.50 paise for shirt after 50% discount on Rs. 1299/-. But the opposite party illegally charged Rs. 688.79 paise . As such the opposite party has charged Rs. 39.29 paise  in excess on the pretext of tax.  In this regard the opposite party has stated that the discount of 50% offered with a condition written on the advertisement which clearly states condition apply and VAT will be charged extra. But the opposite party has failed to produced on  record any advertisement vide which the opposite party has charged Rs. 39.29 paise in excess, than the price mentioned on the retail tag. The act and conduct of the opposite party proves that it has practised unfair trade practice and it tantamount to gross deficiency in service on its part. 

7.       In our considered  opinion, the complainant is not only entitled to refund of the amount of Rs. 39.29/- charged in excess , but he is also entitled to compensation to the tune of Rs. 2500/- alongwith litigation expenses amounting to Rs. 1500/-. . Compliance of this order be made within 30 days from the date of receipt of copy of the order ; failing which complainant shall be entitled to get the order executed through the indulgence of this Forum. Copies of the orders be furnished to the parties free of costs. File is ordered to be consigned to the record room.

Announced in Open Forum

Dated : 21.8.2017