Excelsior Correspondent
JAMMU, Nov 20: A team of officers from Legal Metrology Department today surveyed several hotels as a part of drive to stop billing of unauthorized service charge as it as an unfair/restrictive trade practice under Consumer Protection Act.
The team under the supervision of Manoj Prabhakar, Deputy Controller Enforcement found that some of the hotels such as Fortune Reviera Inn, Khanna Khazana, J R Trade (Bikano) and Lords Inn have already stopped the practice of service charge in response to notice from Legal Metrology Department.
“However, despite legal notices, few others are still continuing with this practice against which the department is preparing to initiate legal action”, a spokesman of the department said.
It is pertinent to mention that hotels collect money in the name of service charge at the rate of 10% from consumers and distribute among waiter as a part of their salary and consumer misconceives this as Service Tax, which is not applicable in the State of Jammu and Kashmir for this trade. The fact is that the hotel management is not authorized to collect such money as it has no legal backing/standing under any Act or Rule.
“The restaurants/hotels and other eateries fix their rates on the items keeping in view the facilities provided by them viz-a-viz their standards of services provided which is inbuilt component part of rate fixed by these eateries itself as such the question of charging service charge over and above declared price on menu is without any legal ground and is not acceptable in the eyes of law”, the spokesman said.
“This practice of collection of service charge from the hard earned pocket of consumers, not supported by law, tends to bring about a manipulation in the price of eatables in such a manner so as to impose unjustified costs on the consumers and many Union Territories and other States have already taken action in this regard”, he said, adding all the hoteliers and other eateries have already been asked to desist from collecting un-authorized service charge and consumer should not be fleeced any further failing which the action as warranted under law will be initiated.
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