Swiggy penalised Rs. 20,000 on Levying Rs 4.50 GST on Soft Drink [Read Order]

Consumer Case - DCDRC - penalty - Swiggy for Levying- GST on Soft Drink - Taxscan

The District Consumer Disputes Redressal Commission (DCDRC), Panchkula imposed the penalty of Rs. 20,000 on Swiggy for Levying Rs4.50 GST on Soft Drink.

The Complainant, Abhishek Garg has ordered food, a cheesy garlic stick worth Rs144 and three Coca Cola bottles of 500 ml at Rs.30 each for Rs.90 from La Pino’z Pizza, through Swiggy. He paid the bill amount of Rs.197 in cash.

The sole grievance of the complainant is with regard to the charging of Rs.4.50 as GST over the Maximum Retail Price Rs.90 of coke, which is allegedly not legally permissible as per the provisions of the Consumer goods (Mandatory Printing of Cost of Production and Maximum Retail Price) Act, 2006.

In its response, Swiggy claimed that it was only an intermediary collecting the payment on behalf of the merchant, who charged all applicable taxes on the bill. So, there was no deficiency in service on its part.

The commission headed by the President Satpal, members Dr.Sushma Garg and Dr. Pawan Kumar Saini concluded that Swiggy cannot defend itself by saying that it has no role to play in the entire transaction of the sale and purchase of food between the complainant and the restaurant.

The commission said that Swiggy is an online shopping portal and works as a link between the buyer and seller to collect orders from consumers and forward those to the seller/vendor concerned for the purpose of delivery. It is certainly not a charitable organisation.

Terming Swiggy guilty of unfair and deficient services, the commission directed it to refund Rs.4.50 along with 9% interest per annum with effect from the date of filing of the complaint till its realisation.

Apart from paying Rs.10,000 to Garg for mental agony, harassment and litigation charges, the company has also been ordered to deposit Rs.10,000 in the account of Haryana State Council for Child Welfare.

The commission has directed the opposite party to comply with the order within a period of 30 days from the date of communication of copy of this order failing which the complainant shall be at liberty to approach this Commission for initiation of proceedings under Section 71 of CP Act, against the OP.

Subscribe Taxscan Premium to view the Judgment

Support our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.

taxscan-loader