Cons protection-Service chrge by restaurant above menu rates
Chintan Shah
(Querist) 14 April 2010
This query is : Resolved
Dear Expert collegues,
Recently I visited a restaurant. The restaurant charged me 10% service charge over and above what was the total of the items that I ordered as per menu. In the menu on the last page there was a small note which read that the consumer will have to pay 5 % over and above the amount of bill. Now there are two questions:
1. Can't the prices mentioned in the menu be considered as MRP and thereby the restaurants must be barred from charging anything else?
2. Further isn't it so that the prices quoted in the menu against individual items must include charges for all the services of the restaurant?
3. Further is a complaint in the consumer court maintainable in this regard?
It may also be noted that the services provided by the restaurant includes normal services such as serving of meal, a good embience and hospitality in the form of waiters.
Please give your opinion supported by appropriate reasoning and case laws if any..
Your opinions are really needed as I need to file a consumer complaint at the earliest.
Regards
CA Chintan Shah
mahendrakumar
(Expert) 14 April 2010
1.prices quoted in the menu is the m.r.p
2.restuarent is entitled to charged service charges applicable over and above the menu rates.
3. if you feel,you have been overcharged,you can raise a consumer case at the district forum.
Parthasarathi Loganathan
(Expert) 14 April 2010
This is a very common practice where the consumers don't make it as a legal issue. Please obtain a proper receipt from the restaurant before any application is filed in the consumer court.
Kiran Kumar
(Expert) 14 April 2010
first of all, the MRP is not fixed by the govt. but the rate of tax is fixed by the govt.
so in my opinion in present scenario, in the absence of any specific rules, it all depends upon the Seller to fix rates and charge tax accordingly.
had it been a case of overcharging then in my opinion you could have succeeded in consumer complaint.
lets c what my other Ld. friends advice.
Raj Kumar Makkad
(Expert) 14 April 2010
Mr. In your matter it seems that you presume that the rate mentioned in the menu should be treated as final and nothing over and above it should be charged in the name of service tax.
Your presumption is wrong. Service tax is charged above and over the billed amount. Taxation is a State subject which goes on changing as per latest rules of Govt. whereas the price of items mentioned in the menu are to be fixed by owner of hotel/restaurant as per his whims and wishes. You cannot file consumer complaint just on the basis of amount charged against the items but you can move this forum in case service tax has been collected from you unreasonably or excessive and further that it has not been got deposited with department.
Chintan Shah
(Querist) 14 April 2010
Dear Raj Sir,
First of all thanks a lot for your answer... I do appreciate it.....
The amount charged is not service tax. It is service charges. Had it been service tax there would have been no issue at all. I am just trying to stress the point that the restaurant over and above the prices mentioned in menu is charging this service charge for god knows what services. This charge is, in my opinion for the purpose of pricing the menu items at lower competitive rates and than over price by adding service charges to the amount of bill on a percentage basis.
Regards
Chintan
Guest
(Expert) 14 April 2010
You may send a representation letter to Food and Co-operation Department of your State and they will take action against the restaurant. If you are not satisfied with the action, you may then file a complaint to the Consumer Forum. I have a similar experience in a restaurant in Chennai. The restaurant was charging same rates for tandoori dishes in A/c. and Non-A/c. and the rates were not displayed on the Notice Board. I took up the matter with the Department. The Department promptly took action against the restaurant and found them guilty of the offences and levied fines. It also sent me reply for the action taken and result thereof.
