Chandigarh

DF-I

CC/646/2016

Ashok Kumar - Complainant(s)

Versus

Levis Retail SQR - Opp.Party(s)

Sahil Dawar

06 Apr 2017

ORDER

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-I, U.T. CHANDIGARH

============

Consumer Complaint  No	:	646 of 2016
Date  of  Institution	:	12.8.2016
Date   of   Decision	:	6.4.2017

 

 

 

 

 

Ashok Kumar S/o Lt. Kanhya Lal, r/o house NO.1263, Sector 34-C, Chandigarh.

……… Complainant.

Versus

 

Levis Retail SQR, SCO NO.419-20, Sector 35/C, Chandigarh through its proprietor/Manager/authorized signatory.

 

……. Opposite Party

 

S.S. Panesar                 PRESIDENT

MRS.SURJEET KAUR             MEMBER

SH. SURESH KUMAR SARDANA     MEMBER

 

 

For Complainant	:	None
For Opposite Party	:	Ex-parte.

 

PER S.K. SARDANA, MEMBER

 

          Put in brief, the facts of the case are that complainant purchased a Deni with MRP of Rs.3199/- inclusive of all taxes. The complainant was offered 50% discount on the said purchase and on the price tag of the said item it mentioned that inclusive of all taxes. When the complainant was given bill he was shocked to notice that he was charged Rs.80.71 as 5%VAT.      The complainant has alleged that the Opposite Party has adopted unfair trade practice by charging extra VAT from him. Hence, alleging the aforesaid act & conduct of the Opposite Party as deficiency in service and unfair trade practice, the Complainant has filed the present Complaint.

 

2.      Notice of the complaint was sent to Opposite Party seeking its version of the case. However, nobody appeared on behalf of Opposite Party despite service, therefore, it was proceeded ex-parte.

 

3.      Complainant led evidence.

 

4.      We have  thoroughly perused the record.   

 

5.      The case of the Complainant is that he was charged extra VAT @5% for the item purchased by him from the OP with MRP of Rs.3199/- (which was inclusive of all taxes) after giving a discount of 50%.

 

6.      Significantly, the Opposite Party did not appear to contest the claim of the complainant and preferred to proceed against ex-parte. This act of the Opposite Party draws an adverse inference against it. The non-appearance of the Opposite Party shows that it has nothing to say in its defence against the allegations made by the complainant. Therefore, the assertions of the complainant go unrebutted & uncontroverted.

 

7.      Now, the core question which survives for determination is whether the MRP includes all taxes including VAT and whether after discount VAT can be charged or not?  

 

8.      After giving our thoughtful consideration, we are of the considered opinion that no one can charge more than the MRP and MRP includes all taxes including VAT/other taxes. When MRP is including all taxes then VAT/other taxes cannot be charged separately. Meaning thereby that MRP includes VAT and after discount no VAT can be charged, so on discounted product also VAT cannot be charged if VAT is included in MRP. 

 

9.      At any rate, if the Opposite Party has offered discount of 47% for an article purchased by the Complainant/Customer, then the Opposite Party is bound to sell the article(s) after discount. Though Opposite Party had offered 47% discount on the article in question, still it charged 5% extra VAT on discounted price inspite of specific mention on the tag MRP inclusive of all taxes. When, once it is mentioned as MRP with inclusive of all taxes, charging of 5% VAT or tax, is certainly against the trade practice. Here we are fortified by the similar view taken by the Hon’ble State Consumer Disputes Redressal Commission, Bangalore, in Appeal No. 3723 of 2011, titled as “The Branch Manager, M/s Shirt Palace Branch, Black Bird Showroom Vs. Chandru H.C.”, decided on 16.01.2014.

 

10.      A similar question arose for determination before the Hon’ble State Consumer Disputes Redressal Commission, U.T. Chandigarh in First Appeal No. 210 of 2015, decided on 01.09.2015 in case titled as “Shoppers Stop and others Versus Jashan Preet Singh Gill and Others”, wherein it has been held that no one can charge more than the MRP and MRP includes all taxes including VAT/other taxes. When MRP is including all taxes then VAT/other taxes cannot be charged separately.

 

11.      The ratio of the aforecited judicial pronouncements are squarely applicable to the present lis. Therefore, the act of the Opposite Party in charging VAT on discounted product, clearly proves deficiency in service on its part, which certainly caused immense mental and physical harassment to the Complainant. 

 

12.      For the reasons recorded above, the present complaint of the Complainant deserves to succeed against the Opposite Party, and the same is allowed. The Opposite Party is directed:-

 

[a]  To refund excess charged VAT of Rs.80.71/- to the Complainant  

[b]  Pay Rs.2,000/- as compensation on account of deficiency in service and causing mental and physical harassment to the Complainant; 

 

[c] Pay Rs.1,000/- towards costs of litigation;

 

13.      The above said order shall be complied within 30 days of its receipt by the Opposite Party; thereafter, Opposite Party shall be liable for an interest @12% per annum on the amounts mentioned in sub-paras [a] & [b] above from the date of institution of this Complaint, till it is paid, apart from costs of litigation mentioned in sub-para [c] above. 

 

14.      Certified copy of this order be communicated to the parties, free of charge. After compliance file be consigned to record room.

Announced

6.4.2017                                                          Sd/-

(S.S. PANESAR)

PRESIDENT

 

Sd/-

 (SURJEET KAUR)

MEMBER

 

Sd/-

 (SURESH KUMAR SARDANA)

MEMBER