Order Name: Gurtej Singh vs. Hotel International
In a significant consumer rights case, the Ferozepur District Consumer Disputes Redressal Commission has held Hotel International accountable for providing subpar service. The hotel had overcharged for bottled beverages by adding an extra GST over the MRP, which resulted in customer inconvenience.
The judgment was delivered by Smt. Kiranjit Kaur Arora, who chairs the commission, with Smt. Suman Khanna serving as a member. The commission instructed Hotel International to reimburse the unjustified GST of Rs. 3.25 along with interest. Furthermore, they were ordered to pay Rs. 3000 to the complainant for the distress and court costs endured.
The case commenced when Gurtej Singh, the complainant, dined at Hotel International on 24th November 2020. He bought a meal accompanied by a 500ml bottle of mineral water and a 500ml cold drink. Despite the printed prices of Rs. 20 and Rs. 30 for the water and drink respectively, he was billed Rs. 25 and Rs. 40. The hotel justified the price hike as an additional service tax. When questioned, the hotel failed to provide a satisfactory explanation, prompting Singh to lodge a complaint citing poor service and unethical business practices.
In response, Hotel International argued that the complaint was unwarranted and unfounded. They denied imposing an unlawful service tax and claimed that Singh had bought a 600ml cold drink, not a 500ml one. They justified charging service tax by highlighting the additional amenities such as ambiance and cutlery provided at their premises. In defense, they revealed the issued bill of Rs. 424 and asserted their right to levy service tax on the beverages.
On reviewing the case, the commission noted that GST, which is included in the MRP, cannot be charged over and above the MRP by service providers. They also observed that since the beverages were not served in a glass but provided in bottles, the extra service charge was unjustified. The commission therefore concluded that Hotel International had overcharged GST by Rs. 3.25. They ruled that this amount, plus 6% interest per annum from the complaint filing date, should be paid back to Singh. Additionally, the hotel was directed to pay Rs. 3000 to the complainant as compensation for mental distress, harassment, and litigation costs within 45 days.
In this case, Sh. Navdeep Soi served as the complainant’s advocate, while Sh. B.S.Gill represented the hotel.
This ruling underscores the importance of consumer rights and the need for businesses to adhere to transparent pricing practices. Always remember to check your bills for any discrepancies and don’t hesitate to question any unclear charges. It’s your right as a consumer.
