TaxTMI 
TaxTMI 
Delhi HC to hear matter over mandatory levying of service charge on May 9
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....elhi HC to hear matter over mandatory levying of service charge on May 9<BR>PTI News<BR>Dated:- 29-4-2025<BR>PTI<BR>New Delhi, Apr 29 (PTI) The Delhi High Court on Tuesday set May 9 to hear pleas of restaurant bodies challenging an order against the mandatory levying of service charge on food bills. The appeals by National Restaurants Association of India (NRAI) and Federation of Hotel and Resta....
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....urant Associations of India came before a bench of Chief Justice D K Upadhyaya and Justice Tushar Rao Gedela. The bodies challenged a single judge's March 28 verdict dismissing the petitions of restaurant bodies against the Central Consumer Protection Authority (CCPA) guidelines, issued on July 4, 2022, prohibiting hotels and restaurants from mandatorily levying service charge on food bills. T....
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....he single judge upheld the guidelines and imposed Rs 1 lakh cost each on the petitioners to be deposited with the CCPA towards consumer welfare. The mandatory levy of service charge by the restaurant establishments, the single judge said, was against public interest and undermined the economic and social fabric of consumers as a class. The single judge further said the collection of service ch....
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....arge was a "double whammy" for consumers who were forced to pay Goods and Services Tax on top of the service tax. NRAI, in its appeal through advocate Lalit Bhasin, has raised several questions of law including whether a levy of service charge, which is specifically mentioned on the menu card of a restaurant and displayed elsewhere in the establishment, constituted an unfair trade practice under....
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.... the Consumer Protection Act, 2019. The appeal further asked if the guidelines were not beyond the jurisdiction of the CCPA. Before the single judge, Federation of Hotels and Restaurant Associations of India and NRAI had filed two separate petitions in 2022. PTI ADS ADS AMK AMK<BR> News - Press release - PIB....