{"id":106441,"date":"2017-02-14T12:52:32","date_gmt":"2017-02-14T07:22:32","guid":{"rendered":"http:\/\/www.scconline.com\/blog\/?p=106441"},"modified":"2017-02-27T17:01:25","modified_gmt":"2017-02-27T11:31:25","slug":"ncdrc-condemns-outlets-for-under-sized-font-of-terms-and-conditions-in-advertisements-holds-no-extra-vat-can-be-charged-on-discounted-items","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2017\/02\/14\/ncdrc-condemns-outlets-for-under-sized-font-of-terms-and-conditions-in-advertisements-holds-no-extra-vat-can-be-charged-on-discounted-items\/","title":{"rendered":"NCDRC condemns outlets for under-sized font of terms and conditions in advertisements, holds no extra VAT can be charged on discounted items"},"content":{"rendered":"

National Consumers Disputes Redressal Commission :\u00a0<\/strong>The\u00a0District Forums in Chandigarh held that there was deficiency in service on the part of the petitioners in charging VAT from the complainants on the \u2018FLAT\u2019 discounted process of the said products advertised by them. Appeal to the decision of all the Fora was before National Consumers Disputes Redressal Commission, New Delhi.<\/p>\n

The background facts were that the complainant purchased a \u2018GMT Men Jacket\u2019 from petitioner\u2019s outlet. The MRP on the tag was Rs 3,995. After deducing Rs 1,598 \u00a0as discount @40% and adding to the discounted price, VAT @ 5%, amounting to Rs 119.85, the Complainant was asked to pay Rs 2,517\/- as cost for the said Jacket. The Complainant protested for charging extra VAT, when the amount, so demanded, resulted in a discount less than \u201cFlat\u201d 40% of the stated MRP. The petitioner did not pay heed to the protest on the ground that as per the terms and conditions (T & C) of the SALE, VAT had been charged extra as per the instructions of the parent company.<\/p>\n

On complaint, the petitioner averred before the forum that there was no illegality in charging extra VAT because the moment a purchaser availed of the scheme, he was out of the ambit of MRP, which served only the basis for calculation of net sale consideration subject to payment of VAT and also that the display board and advertisement had clearly made it public that 40% to 50% discount was only for allowing the reduction but it was subject to payment of VAT.\u00a0The District Forum on hearing the parties ruled that since the MRP includes the VAT, so one could easily understand that the VAT was already paid and held that the advertisement of 40% off in itself was misleading. One cannot reach at the conclusion that VAT extra was also to be given on 40% off price or 60% of the price and its display amounted to unfair trade practise.<\/p>\n

When the petitioners appealed before NCRDC, the main question the Court observed before it was whether a discount of \u201cFLAT* 40%\u201d on selected merchandise as announced, when in actual terms works out to less than 40% on the MRP, had the\u00a0Petitioners indulged in unfair trade practice and\/or there was any deficiency on their part in charging VAT on the discounted price of the merchandise.\u00a0The Commission examined the expression \u201cunfair trade practice\u201d, as defined in Section 2(r) of the VAT Act and meaning of expression \u2018bargaining price\u2019 in the clause and came to the conclusion that the meaning of the provision leaves little scope for doubt that the advertisement offering \u201cFLAT\u201d 40%\u2019\u2019 off on the select merchandise was the bargaining price within the meaning of clause (2) of Section 2(r) of the Act.<\/p>\n

The Court opined that any one who would see the advertisement would understand that the items were for Sale at FLAT 40%. The Court went on to say that though it is true that the word \u201cFLAT\u201d had an asterisk, appended to it, purporting to be a pointer to an annotation or footnote, but a bare comparison of the font size of \u201c40%\u201d and the font size of the corresponding terms and conditions mentioned in the footnote, clearly showed that there was no intention to sell the goods at a discount rate of 40%, that was the offered bargain prize which the Commission said was nothing, but an allurement to a gullible consumer.<\/p>\n

The Division Bench further elucidated that MRP under Section 2(d) of the Consumer Goods (Mandatory Printing of Cost of Production and Maximum Retail Price) Act, 2014, means \u201csuch price at which the consumer goods shall be sold in retail and such price shall include all taxes levied on the goods\u201d and it is no surprise that a consumer would be tempted to buy the goods under a bonafide belief that he would get a flat 40% off on the MRP. In view of the reasons given, the Commission agreed with the decision of the District Fora. [M\/S. Aero Club (Woodland) v. Rakesh Sharma, 2017 SCC OnLine NCDRC 44<\/a>, decided on 4-1-2017]<\/p>\n","protected":false},"excerpt":{"rendered":"

National Consumers Disputes Redressal Commission :\u00a0The\u00a0District Forums in Chandigarh held that there was deficiency in service on the part of the petitioners <\/p>\n","protected":false},"author":91,"featured_media":199533,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,11],"tags":[],"class_list":["post-106441","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-tribunals_commissions_regulatorybodies"],"yoast_head":"\nNCDRC condemns outlets for under-sized font of terms and conditions in advertisements, holds no extra VAT can be charged on discounted items | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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Said\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"National Consumer Disputes Redressal Commission","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":101371,"url":"https:\/\/www.scconline.com\/blog\/post\/2017\/01\/23\/compensation-of-rs-1-lakh-imposed-upon-malaysian-airlines-for-delay-and-damages-caused-to-a-consignment\/","url_meta":{"origin":106441,"position":1},"title":"Compensation of Rs 1 lakh imposed upon Malaysian Airlines for delay and damages caused to a consignment","author":"Saba","date":"January 23, 2017","format":false,"excerpt":"National Consumer Disputes Redressal Commission (NCDRC):\u00a0An amount of Rs 1 lakh has been imposed upon Malaysian Airline System Berhad as compensation for delay and damages caused to a consignment which was airlifted by the Airlines from Los Angeles to India. Facts of the case are that the complainant Firm had\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"National Consumer Disputes Redressal Commission","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":233417,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/08\/05\/ncdrc-mc-donalds-promotional-scheme-assuring-a-prize-on-every-purchase-declared-as-an-unfair-trade-practice-consumer-compensated-with-rs-30000\/","url_meta":{"origin":106441,"position":2},"title":"NCDRC | Mc Donald’s promotional scheme assuring a prize on every purchase declared as an unfair trade practice; Consumer compensated with Rs 30,000","author":"Bhumika Indulia","date":"August 5, 2020","format":false,"excerpt":"National Consumer Disputes Redressal Commission (NCDRC):\u00a0Prem Narain (Presiding Member) upheld the State Commission's order partly and confirmed that the promotional scheme by Mc Donalds -- \u2018Mc Donald\u2019s Mein Khao Har Bar Prize Le Jao\u2019\u00a0 was an unfair trade practice. Present revision petition was filed against the Delhi State Consumer Disputes\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"National Consumer Disputes Redressal Commission","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":301409,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/09\/14\/ncdrc-directs-developers-hand-over-possession-or-refund-sum-of-1-crore-home-buyer\/","url_meta":{"origin":106441,"position":3},"title":"NCDRC directs developers to hand over possession of flat or refund sum of 1 crore to a buyer","author":"Ridhi","date":"September 14, 2023","format":false,"excerpt":"NCDRC remarked that the argument of dissolution of joint venture agreement relieving obligations of one of the opposite parties was misconceived and could not be accepted.","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"national consumer disputes redressal commission","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/national-consumer-disputes-redressal-commission.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/national-consumer-disputes-redressal-commission.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/national-consumer-disputes-redressal-commission.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/national-consumer-disputes-redressal-commission.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":308060,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/11\/30\/insurance-policy-issued-after-inspection-objections-misrepresentation-non-disclosure-cannot-raised-structure-in-fire-ncdrc\/","url_meta":{"origin":106441,"position":4},"title":"Policy issued after inspection, objections of misrepresentation or non-disclosure cannot be raised after structure was gutted in fire: NCDRC","author":"Ridhi","date":"November 30, 2023","format":false,"excerpt":"NCDRC concluded that the Insurance Company failed to establish any misrepresentation or non-disclosure of material facts while obtaining the insurance policy.","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"national consumer disputes redressal commission","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/national-consumer-disputes-redressal-commission.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/national-consumer-disputes-redressal-commission.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/national-consumer-disputes-redressal-commission.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/national-consumer-disputes-redressal-commission.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":235380,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/09\/05\/ncdrc-to-determine-pecuniary-jurisdiction-of-district-commission-state-commission-or-national-commission-which-value-of-goods-or-services-has-to-be-considered-commission-elaborates\/","url_meta":{"origin":106441,"position":5},"title":"NCDRC | To determine pecuniary jurisdiction of District, State or National Commission which value of goods or services has to be considered? Commission elaborates","author":"Bhumika Indulia","date":"September 5, 2020","format":false,"excerpt":"National Consumer Disputes Redressal Commission (NCDRC):\u00a0A Division Bench of R.K. Agrawal (President) and Dr S.M. Kantikar (Member), held that \"...for detrmining the pecuniary jurisdiction of the District Commission, State Commission or National Commission the value of goods or services paid as consideration alone has to be taken and not the\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"National Consumer Disputes Redressal Commission","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/106441","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/91"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=106441"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/106441\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/199533"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=106441"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=106441"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=106441"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}