Order dictated by:
Ms.Rachna Arora, Member
- Ravinder Singh, complainant has brought the instant complaint under section 11 & 12 of the Consumer Protection Act, 1986 on the allegations that complainant alongwith his family friend visited the restaurant of opposite party on 1.10.2016 and ordered food and mineral water for which opposite party charged Rs. 420/- and after adding taxes it comes to Rs. 505/- for which opposite party had issued retail invoice No. 12726 to the complainant. At the time of payment the complainant brought the fact to the notice of the opposite party of charging of VAT 14.30% on mineral water. While as per notification of Punjab Government under “single stage taxation” scheme soda, soft drink and mineral water are declared tax free . But the opposite party instead of listening to the requests of the complainant, humiliated the complainant in the presence of family friend and other people . The act and conduct of the opposite party amounts to unfair trade practice as well as deficiency in service. Vide instant complaint, complainant has prayed for the following reliefs:-
- Opposite party be directed to stop charging illegally VAT to customers and refund excess money charged to the complainant ;
- Compensation to the tune of Rs. 30000/- alongwith litigation expenses to the tune of Rs. 7500/- may also be awarded to the complainant.
Hence, this complaint.
2. Upon notice, opposite party appeared and filed written version in which it was denied that complainant had visited the restaurant of opposite party on 26.12.2016 to take lunch. However, it was correct that copy of bill supplied alongwith complaint is of restaurant of the opposite party. It was denied that any packed bottle/drink was served by the opposite party. Infact the employee of opposite party sought desire of customer for routine water or mineral water and on the demand of customers, the employees served mineral water in glasses from the mineral water bottles and as such VAT is charged as per government rules and instructions on the total amount of bill. It was denied that replying opposite party has violated the Punjab VAT Act 2005. The customer had not purchased packed mineral water bottle or any other food item. It is pertinent to mention over here that restaurant of replying opposite party is legally run and has been granted VAT number. The customer placed order after going through the rates given on Menu. It was denied that any alleged altercation took place between the customer and the employees of the replying opposite party. The employees of the replying opposite party are well educated, well trained and experienced employees and are known for curtsy , hospitality to their customers. While denying and controverting other allegations, dismissal of complaint was made.
3. Complainant tendered into evidence his duly sworn affidavit Ex.C-1, copy of invoice Ex.C-2, copy of notification dated 21.2.2014 Ex.C-3 and closed his evidence.
4. To rebut the aforesaid evidence Sh. Tarsem Singh, Manager Temptation Restaurant tendered into evidence his duly sworn affidavit Ex.OP1/A , copy of Menu Ex.OP1 and closed the evidence on behalf of opposite party.
5. We have heard the ld.counsel for both the parties and have carefully gone through the record on the file.
6. Ld.counsel for the complainant has vehemently contended that on 1.10.2016 complainant alongwith his family visited the restaurant of the opposite party and ordered food and mineral water for which opposite party issued invoice No. 12726 dated 1.10.2016 420/-. On the said amount opposite party charged 14.30% VAT and 6% service tax totaling Rs. 505/-. Copy of bill accounts for Ex.C-2 on record. The complainant made protest against charging of 14.30% on mineral water and told the opposite party that Punjab Government under “Single stage taxation” scheme declared tax free on soda, soft drink and mineral water. In this regard complainant has placed on record copy of notification of the Punjab Government dated 21.2.2014 .But the opposite party did not pay any heed to the request of the complainant. Ld.counsel for the complainant has vehemently contended that charging of 14.30% VAT on mineral water amounts to deficiency in service.
7. On the other hand ld.counsel for the opposite party denied the visit of the complainant at the restaurant of the opposite party on 26.12.2016. However, the opposite party admitted the copy of bill supplied alongwith the complaint. It has vehemently been contended on behalf of the opposite party that VAT is charged as per government rules and instructions on the total amount of bill.
8. From the facts and circumstances of the case, it becomes evident that opposite party charged 14.30% VAT on mineral water. In this regard complainant has placed on record copy of bill Ex.C-2 . It was the case of the complainant that opposite party cannot charge VAT on Soda, soft drink and mineral water as per notification of Punjab Government. Copy of notification is Ex.C-3 on record. However, the only plea of the opposite party that VAT is charged as per government rules and instructions on the total amount of bill. Prices of food, beverages , water etc are mentioned on Menu and the complainant after verifying prices mentioned on Menu card, has placed order. But, however, the opposite party has not placed on record any rules and instructions vide which the opposite party has charged VAT on the total amount of bill. Perusal of copy of notification filed by the complainant Ex.C-3 fully proves that the Punjab Government vide its notification dated 21.2.2014 declared tax free on mineral water. The complainant has visited the opposite party restaurant on 1.10.2016 and took food and mineral water and the opposite party issued invoice Ex.C-2. The copy of invoice proves the charging of 14.30% VAT on the total amount of the bill in which mineral water is also included. However, the opposite party cannot charge VAT on mineral water after 21.2.2014. So it proves beyond doubt that the opposite party has violated the rules and instructions of the notification issued on 21.2.2014 by charging VAT 14.30% on mineral water.
9. From the aforesaid discussion, it emerges that Opposite Party has indulged in unfair trade practice by charging VAT 14.30% on mineral water from the complainant which the Opposite Party is under legal obligation to refund the same to the complainant forthwith. The complainant has demanded Compensation to the tune of Rs. 30000/- as well as litigation expenses to the tune of Rs. 7500/-. So far as compensation regarding unfair trade practice as well as mental agony and harassment to the complainant is concerned, the complainant is entitled to receive as much compensation to offset the loss occasioned to him. It is settled principle of law that no exorbitant compensation can be awarded to enrich a party at the cost of the other party. Therefore, the claim of the complainant for grant of hefty amount as compensation, is not tenable. In our considered opinion, the complainant is entitled to receive compensation to the tune of Rs.2,000/- (Rupees two thousands only) and which is awarded accordingly while litigation expenses are assessed at Rs. 1000/-. Compliance of this order be made within 30 days from the receipt of copy of the order, failing which the complainant is at liberty to get the order executed through the indulgence of this Forum. Copies of the order be furnished to the parties free of costs. File is ordered to be consigned to the record room.
Dated : 31.8.2017
