As UT turns a blind eye on retailers charging VAT on MRP in the name of discount, consumer courts continue to flood with such cases. In recent orders uploaded on forums website, the district consumer forum Chandigarh in four days directed seven different stores to pay compensation to eight complainants for Charging VAT on MRP after offering discount.

Out of eight complaints, one was filed against A to Z Fashion (Woodland Store) in Sector 17 by a Sector 32 resident Ajay Kumar, one was filed against MR Enterprises, Sector 17, by Surinder Singh Soni of Sector 36, one was against ADI Sports, DT Mall by Savinder Singh Gill of Sector 10, two complaints were against Aero Club Chandigarh (Woodland), Elante Mall by Harpreet Singh of Mohali and Nipun Ansal of Mohali, one was filled against Kapsons Retail (P) Limited in Elante Mall by Vikas Agagrwal of Sector 15, Panchkula, one was filled against Kapson Agencies Limited in DT mall by Vipan Negi of sector 40 chandigarh and one was filed against Kapsons Global in sector 17 by Parminder Chand, sector 44 Chandigarh.

In all complaints, the complainants had purchased some product on discount and on receiving the bill realized that VAT was charged on the discounted amount. In all cases, forum held that if "it is clearly mentioned as MRP inclusive of all taxes, charging of extra VAT or tax, is certainly against the trade practice."

In each case, forum directed stores to refund the amount charged as VAT on MRP (Rs 540, Rs 375, Rs 63, Rs 75, Rs 130, Rs 150, Rs 106, and Rs 80, respectively) and to pay Rs 2,000 as compensation on account of deficiency in service and causing mental and physical harassment and Rs 1,000 as litigation cost to each complainant. All these cases were decided between October 24 and 28 and were uploaded on forum's website on Thursday.