Hyderabad: Restaurant in Jubilee Hills Ordered to Refund Customer Over Illegal Service Tax
A Jubilee Hills restaurant faces a court order to refund Rs 3,000 after charging an illegal service tax.
Goud while checking the bill, he saw a charge called "Service Tax Optional (ST OPT 10%)" for Rs 274.90.
A restaurant in Jubilee Hills has been ordered to reimburse a customer Rs 3,000 after it incorrectly charged a service tax of Rs 247 following a visit in October last year.
The customer, Harish Kumar Goud, a real estate businessman, dined at Chiguru Restaurant with his clients, receiving a bill of Rs 3,116.
When Goud checked the bill, he saw a charge called "Service Tax Optional (ST OPT 10%)" for Rs 274.90.
He informed the waiter and asked for a refund, saying it was illegal. The restaurant refused to change the bill.
After Goud sent a legal notice, they finally returned the money.
When Goud asked if the restaurant would stop this practice, they said it would continue.
Distressed by the experience and the embarrassment in front of his clients, he requested Rs 1,00,000 in compensation and demanded that the service tax charges be removed immediately.
The court ultimately ruled that the restaurant must refund Rs 274 for the service tax, plus GST, with interest at 9 percent per annum from October 28, 2023.
Additionally, the restaurant has been ordered to pay Rs 3,000 for mental anguish and Rs 1,000 for other costs.
