Lifestyle fined Rs4,000 for VAT on discounted item

Akash Ghai
Tribune News Service
Mohali, August 25

Charging Rs 3.15 as value added tax (VAT) on a discounted item costs dear to Lifestyle International, which has to shell out  Rs 4,000 as compensation to a customer following  orders by the District Consumer Disputes Redressal Forum, Mohali.

A case in this regard was filed by Chandigarh resident Charan Singh, who claimed that he had purchased an article from a Lifestyle store at a mall in Mohali on June 29, 2017, by paying Rs 66 — getting a discount of 30 per cent. He stated that the total payment included Rs 3 as VAT, which could not be charged on a discounted item.

According to the complainant, VAT charged on the discounted price was an unfair trade practice, resulting in mental and physical harassment.

On the other hand, the opposite party (Lifestyle) in its reply termed the complaint as false, frivolous and vexatious. The company claimed that the words ‘taxes/VAT extra’ were clearly mentioned in all of its advertisement and marketing material and even the complainant was informed about the discounted offer.

After hearing both parties, the forum allowed the complaint with direction to Lifetsyle to refund excess charged amount of Rs 3.15 with an interest of 6 per cent per annum with effect from June 29, 2017, till payment. The forum also directed the company to pay compensation for mental agony and harassment of Rs 2,000, along with litigation expenses of Rs 2,000. The company has been directed to make the payment within 30 days of receipt of copy of the order.

The case

A case in this regard was filed by Chandigarh resident Charan Singh, who claimed that he had purchased an article from a Lifestyle store at a mall in Mohali on June 29, 2017, by paying Rs 66 — getting a discount of 30 per cent. He stated that the total payment included Rs 3 as VAT, which could not be charged on a discounted item.