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chitragya (n/a)     02 February 2009

Vat applicable if the goods returned

Dear Sir,

I have purchased a Water Purifier from Eureka Forbes from the distributor for Rs.8000/- Plus VAT 12.5% which amounting of Rs.9000/- and received a bill of the same amount.

But there is a problem in the Water Purifier, it is leaking from the tap and have requested to him to change the water purifier but no response from 2-3 days. At last without any other option, I have returned the matter to him and ask for the money. But he has refused to give me full amount of Rs.9000/- becuase of VAT 12.5% which amounting 1000/-. He told me that if you want get back your money then I will deduct the Tax and give you Rs. 8000/- only nothing else.

This is my requet to pls advise me because the original is lying with me. My question is that can he not cancel the bill and return the full amount.

Pls advise in the case.

Regards ,



 6 Replies


I found this interesting thread of discussions in one of the sister sites. hope this helps answer you question.


Anuj Kumar Goel (Service)     03 February 2009

You didnt mention the date of purchase. Vat is refundable if the goods are returned within six month of the date of purchase.

chitragya (n/a)     04 February 2009

Dear Mr. Goel,


I have purchased on 27.01.09 & installed on 28.01.09 but there was a leaking problem with the machine which I have returned the same to the distributor.  But asking for full money he told me that you have to bear the VAT which is Rs.1000/- & rertunred the amount of Rs.8000/- out of Rs.9000/-. 


Pls advise what I can do.  Help plssssssssssssssssssss......






Anuj Kumar Goel (Service)     04 February 2009

If there is any defect in the product , the company can take it as a goods return in their books and since the purchase date is not more than 6 months the tax entry could be reversed and claimed back by the company . I do not find any problem in refunding the whole amount including tax. You can put pressure on the executive by forwarding the matter of refund of full amount with the companys account manager or other senior official. Tax laws permit the refund of full amount including tax if goods are returned within 6 month of the date of purchase.

A V Vishal (Advocate)     04 February 2009

You have another option I suggest you file a case against the dealer in a Consumer Forum for selling a defective piece and further you can insist on replacement of the same and in case he refuses you can claim damages too

Anuj Kumar Goel (Service)     04 February 2009

I agree with Mr.A V Vishal view. But such litigation will take long time to settle and costs. It is upto you to decide which way to go. In my opinion settle the issue by showing the tax law . Even if the company do not refund the amount then it is wise to file a complaint in consumer forum.

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