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| Hotliers, eatries issued notices for levying service charge | | | Early Times Report
JAMMU, Nov 20: Legal Metrology Department has issued notices to hotliers and eatries for duping customers in the name of service charge.
As part of its drive to stop billing of unauthorised service charge, a team of officers from the legal metrology department, under the supervision of deputy controller (enforcement) Manoj Prabhakar, today surveyed several hotels as it is an unfair and restrictive trade practice under Consumer Protection Act.
It was found that some of the hotels have already stopped the practice of service charge in response to notice from legal metrology department for its immediate embargo.
However, despite legal notices, a few others were still continuing with this practice against which the department was preparing to initiate legal action, official sources said.
It is pertinent to mention that hotels collect money in the name of service charge at the rate of 10 pc from consumers and distribute among waiters as part of their salaries 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 under any Act or rule.
"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 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," the sources added. "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. Many Union Territories and states have already taken action in this regard and through the medium of this notice, all the hoteliers and other eateries are informed again to desist from collecting unauthorized service charge and consumer should not be fleeced any further failing which the action as warranted under law will be initiated," sources said.
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