The Cuddalore District Consumer Disputes Redressal Commission on Tuesday, directed a Cuddalore-based jeweller to pay ₹50,000 to a consumer for unfair trade practices and deficiency in services.
In his petition, Pushparaj, 58, a teacher of Cuddalore, said that he had joined ‘Swarna Viruchagam’, a deposit scheme floated by Sri Valli Vilas, Cuddalore. Under the scheme, the jeweller accepted periodical deposits for a stipulated duration with a promise that a corresponding quantity of gold would be credited to the subscriber’s account, which could later be utilised to purchase ornamental jewellery. The jeweller also advertised that both ‘wastage charges’ and ‘making charges’ would not be included in the gold purchased under the scheme.
However, the petitioner told the consumer disputes commission that at the time of purchase, Sri Valli Vilas added a component called ‘Value Addition’, which, he said, was nothing but wastage charges and making charges, which was against the terms of the scheme.
The jeweller claimed that the ‘Value Addition’ was added only for the purpose of calculation of Goods and Services Tax (GST) and he said charges were later discontinued as promised under the scheme.
The Commission held that there was no law or rule or regulation in place mandating ‘wastage’ or ‘making’ charges. Rather it was the sole discretion of jewelers to levy the same based on the work carried out on the jewellery.
“Going by this logic, the wastage can either be 0% (no waste) or any percent which is entirely within the discretion fixed by them. If the wastage is fixed at 0%, the requirement or duty of the jeweller to collect GST on the wastage would not arise at all,” the Commission said.
The Commission observed that the jeweller, having advertised that they would not charge wastage for those customers enrolled under the scheme, could not include a ‘Value Addition’ charge by stating that the same is done only for tax purposes.
The Commission, headed by the president and Judge D. Gopinath held Sri Valli Vilas liable for unfair trade practices and deficiency in services and directed the jeweller to pay ₹50,000 to the petitioner. The Commission also directed the jeweller to discontinue the operation, promotion, advertisement, or marketing of the Swarna Viruchagam scheme on its websites, e-publications or in printed form.
