Shoppers Stop pays for charging VAT on discounted product

Shoppers Stop was made to pay for charging 5 percent VAT on a discounted product over and above the maximum retail price (MRP) at Elante Mall. The UT Consumer Disputes Redressal Forum has directed SSL to pay Rs 17,000-Rs 10,000 as compensation and Rs 7,000 towards the litigation cost, after it charged Rs 98 extra on a pair of discounted Red Tape shoes. The compensation of Rs 10,000 has been ordered on account of deficiency in service and causing mental and physical harassment to the complainant.

The complainant, Jashan Preet Singh Gill, a resident of Mohali, enrolled himself as a First Citizen member of Shoppers Stop, scheme that offers various special schemes, discounts and season sales preview for members. As per the complaint, a pair of discounted Red Tape shoes that he purchased under sale at Shoppers Stop in Elante Mall, should have cost him Rs 1,977 after 40 percent discount against the original rate of Rs 3,295. However, he was charged Rs 2,075, Rs 98 more than the MRP. Interestingly, the same pair was available for a lesser price at other stores after the same discount of 40 percent. It was also alleged that Shoppers Stop discontinued sending alert SMSes or emails during their special offers without any prior intimation.

In their reply, Shoppers Stop stated that VAT was imposed on the Red Tape shoes bought by the complainant on Rs 1,977, which was calculated after the discount. The store denied any hidden charges and sought dismissal of the complaint. However, the consumer forum, presided over by president PL Ahuja and members Surjeet Kaur and Suresh Kumar Sardana, stated that “after giving our thoughtful consideration, we are of the considered opinion that no one can charge more than the MRP, which includes all taxes such as VAT. Charging 5 per cent VAT is certainly against the trade practice.”