Club charged extra VAT, allege customers

Amritsar, May 1

Customers, who recently organised a party at a private club equipped with a bar on the Airport road, alleged that they were charged excess VAT and illegal liquor was sold to them at exorbitant rates.

Balvinder Singh Balli of RPB Wine Group alleged that Indian made foreign liquor (IMFL) brought from Chandigarh and Haryana at low rates was being sold at a bar-cum-restaurant on the airport road. The move deprived government of its share of revenue.

It is alleged that owners of clubs and restaurants equipped with bars were flouting norms as they used to bring liquor from outside state to sell these in their premises.

He alleged that owners of the club were selling a bottle, being sold in Chandigarh at Rs 18,000 for Rs 30,000 and another bottle, being sold there at Rs 4,000, at Rs 8,000 to the customers at the club.

This was not enough, the customers were being charged 22 per cent VAT, instead of 14 per cent. As per the notification of the government, only 14 per cent VAT can be charged. The case of a club house came to light as a section of customers approached the department that they were being charged excess money. Customers protested that they were duped but its owners did not pay any heed. So they approached the Excise Department with their complaint. Excise officials promised action.