Following a complaint against an eatery for charging “service charge” of ₹168, despite relevant rules stating that its not mandatory, it compensated the complainant by paying ₹10,000.
Complainant Aashish George had moved a District Consumer Disputes Redressal Forum alleging that All American Diner had charged ₹168, despite rules that exempted customers from paying the tax.
Citing relevant guidelines issued by the Ministry of Consumer Affairs, Food and Public Distribution, the plea alleged: “It has been stated that it is not mandatory for consumers to pay service charge charged by restaurants and it is solely on the discretion of consumers whether they want to pay or not.”
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Following the settlement between the parties, the consumer panel said: “An amount of ₹10,000 has been given on behalf of the restaurant, which the counsel for the complainant has received towards full and final settlement.”
It was alleged that for a bill amount of ₹2,100, the eatery had charged ₹168 as service charge, which the complainant had refused to pay, citing relevant rules.
“…in spite of complainant’s repeated requests, the restaurant did not remove or deduct the service charge from the bill, which was charged illegally by them and refused the complainant’s request upfront, which was legally binding on the restaurant as per guidelines,” the plea alleged.
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Further, it was alleged that the eatery, while refusing to deduct the service charge, had contended that entry of customers into the restaurant “implied consent” towards payment of the service charge.
“The restaurant stated that charging of service tax is mandatory in the establishment, restaurant or café and the complainant’s entry or any customer’s entry amounts to his implied consent to pay the service charge,” read the plea.
While the complainant sought compensation of over ₹50,000 for unfair trade practices, both parties agreed for a settlement of ₹10,000.