Consumer forum orders eatery to repay service tax charged in 2015

Quoting the letter from Deputy Secretary, Ministry of Consumer Affairs, Food and Public Distribution, the bench comprising M Mony, forum President and R Baskarkumaravel, forum member said, “The service charges are discretionary and a consumer dissatisfied with the services can have itwaived off.”

According to the petition, D William Angelo went to Buhari Hotel in Chromepet on 25 June 2015, and purchased one litre of mineral water wherein, the MRP is Rs 22 but the hotel collected Rs 27 claimingservice tax.

The petitioner contended that the hotel had issued a fresh bill for food and other eatables and collected service taxes and value-added tax (VAT). When William enquired about the details of the bill, the management was irresponsible, the petitioner claimed.

Countering this, the hotel contended that William should have gone to a supermarket or a departmental store to buy water at the MRP, but he cannot expect an establishment with many facilities for their customers like seating arrangements and air conditioners, to charge the same amount.

The bench, however, accepted the petitioner’s allegation and found the hotel severally liable to refund the service charges and to pay Rs 10,000 towards compensation for mental agony with a fine of Rs 5,000.