HYDERABAD: The District Consumer Disputes Redressal Commission, Nalgonda has directed a Jubilee Hills-based restaurant to pay Rs 3,000 compensation for illegally charging a service tax of Rs 274 despite the complainant’s request to remove it.
The Court has also ordered the Chiguru Restaurant to refund Rs 274 (charged as service tax) along with nine per cent per annum interest.
The case dates back to October 2023 when the complainant, B Harish Kumar Goud, stated that the eatery served him with a bill of Rs 3,116 after having lunch.
However, after taking a note of the bill, Goud found that the restaurant had levied a service tax of Rs 274.90, which has been mandated optional by the Supreme Court.
The complainant requested the restaurant to remove the service tax and asked for a fresh bill. On the contrary, the restaurant denied Goud’s request, leaving him with no option than to pay the whole amount.
Meanwhile, after being issued legal notice, the complainant said the restaurant credited his bank account with Rs 274, the amount of service tax charged earlier.
But when Goud asked the opposite party’s representative to stop putting up the service tax on the bills, the latter said the tax will continue. As a result, the complainant decided to move forward with his complaint.
Noting unfair trade and deficiency in service that made Goud suffer humiliation in front of other customers, the Consumer Forum bench asked the restaurant to comply with the order within 30 days from the order date, October 7.