Ser­vice Charge Is Il­le­gal in Chandi­garh

Consumer Voice - - Legal Matters -

On March 9 this year, the deputy com­mis­sioner of Chandi­garh an­nounced that ser­vice charge was il­le­gal. He stated: ‘There will be no ser­vice charge on food bills that ho­tels and restau­rants are levy­ing on con­sumers as it is not backed by any statute.’ This is the sec­ond time the UT ad­min­is­tra­tion has passed such an or­der. In a com­mu­ni­ca­tion on 31 Oc­to­ber 2014, the ex­cise and tax­a­tion de­part­ment had in­structed all ho­tels/ restau­rants not to charge any ser­vice charge from cus­tomers, fail­ing which nec­es­sary le­gal ac­tion would be taken against them. The Chandi­garh Consumer Fo­rum had then started im­pos­ing fine on restau­rants found vi­o­lat­ing the or­der.

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