The apex consumer commission has found high-end fashion chain Benetton India Pvt Ltd guilty of unfair trade practice and penalised it for charging a customer Rs 97 as VAT on a discounted pair of trousers worth Rs 1,609.
The National Consumer Disputes Redressal Commission (NCDRC) directed the Gurgaon-based branch of Benetton Group to pay Rs 5,000 to the customer, a Punjab resident, as compensation and imposed Rs 1,000 on it as litigation cost.
While holding the company guilty, the commission also rejected its contention that it was not a flat 30 per cent discount and was subject to value-added tax, saying "Merely the absence of word 'FLAT' in their offer will not make any difference because the discount of 30 per cent on MRP by itself means that discount is 'FLAT' discount on maximum retail price."
The NCDRC passed the order while dismissing the revision petition of the company against the decision of the State Commission and district forum.
According to the complaint, in 2014, Amritsar resident Ravinder Singh had purchased a pair of trousers, which was originally priced at Rs 2299, at a 30 per cent discount but was additionally charged Rs 97 on the discounted price of Rs 1,609.
He had alleged that he was over charged and blamed the company of illegal trade practices.
The company had denied the allegations of overcharge or unfair trade practice saying it was without any bias, adding that the trouser was offered on 30 per cent discount subject to payment of VAT.
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