STATE TIMES NEWS
JAMMU: A team of officers from Legal Metrology department (LMD) under the supervision of Manoj Prabhakar Deputy Controller Enforcement surveyed several hotels as a part of drive to stop billing of unauthorized service charge from consumers as it is an unfair/restrictive trade practice under Consumer Protection Act.
It was 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 LMD for its immediate embargo.
However, despite legal notices, few others are still continuing with this practice against which the department is preparing to initiate legal action.
It is pertinent to mention that hotels collect money in the name of service charge at the rate of 10 per cent from consumers and distribute among waiters as a part of their salary and bizarre is that the consumer misconceives this as Service tax, which is not applicable in the state of Jammu and Kashmir for this trade and unknowingly consumers pay tip too as a gesture of service by the waiters. 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 restaurant/Hotel 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 their rate fixed by these eateries itself and as such the question of charging of service charge over and above declared price on menu is without any legal ground and is not acceptable in the eyes of law.
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 state have already taken action in this regard and hence all the hoteliers and other eateries should desist from collecting un-authorized service charge and consumers should not be fleeced any further failing which the action as warranted under law will be initiated.
