The District Consumer Disputes Redressal Forum directed a footwear brand to pay a compensation of Rs 5,000, including cost of litigation, for charging value added tax (VAT) on discounted products. The forum also asked Sketchers, Elante Mall showroom, to refund Rs 312.44 overcharged as VAT to complainant Suresh Chamoli, a resident of Mohali on Monday. Suresh had visited the outlet of the footwear brand in July 2016.
To promote the sale of its products, the company had offered a flat 50 per cent discount on MRP. Suresh purchased a pair of shoes from the outlet.
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The maximum retail price (MRP) of the product was Rs 4,999 inclusive of all taxes. The company charged Rs 2,812 from Suresh, which included Rs 312.44 as VAT. Suresh had objected to the company charging VAT on discounted products at the time of purchase as the MRP already included VAT but the representatives of the company didn’t agree.
Hence, he filed a case in the consumer courts on September 6, 2016. Though notice was served to the footwear brand, it did not depose before the court. The forum then initiated ex-parte proceedings against them.