Ice cream shop fined for levying service charge; Chandigarh consumer panel orders Rs 5,000 compensation

Business & Finance
8 Jun 2026 • 1:24 PM MYT
Tribune
Tribune

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The District Consumer Disputes Redressal Commission, Chandigarh, has directed an ice cream shop to refund a service charge of Rs 35.75 and pay Rs 5,000 as compensation to a city resident for unfairly levying the charge on a customer bill.

The Commission also ordered the shop to pay interest at the rate of 9 per cent per annum on the refunded amount from the date of payment until its realisation.

According to the complaint, filed by city resident Satinder Pal Singh Bhullar through advocate Ravi Inder Singh, he visited Twisting Scoops Private Limited on the Grand Trunk Road, Jalandhar-Chandigarh highway, on February 23, 2025, and purchased ice cream worth Rs 394.

While examining the bill, Bhullar noticed that the shop had levied a service charge of 10 per cent amounting to Rs 35.75, which is impermissible.

He alleged that when he objected to the charge and sought clarification from the manager, his grievance was not addressed and he was compelled to pay the total bill, including the service charge.

The complainant contended that the levy was contrary to the guidelines issued by the Central Consumer Protection Authority (CCPA) dated July 4, 2022, which prohibit hotels or restaurants from adding service charges to customers’ bills.

He alleged that the act amounted to deficiency in service and an unfair trade practice.

The Commission noted that the shop owner failed to file its written reply within the stipulated period.

After hearing the arguments, the Commission held that compelling the complainant to pay the service charge constituted deficiency in service and an unfair trade practice. It observed that the complainant was entitled to a refund of the amount wrongly credited.

Accordingly, the Commission directed the shop to refund Rs 35.75 along with interest at 9 per cent per annum from the date of payment. It also awarded Rs 5,000 as compensation for the mental agony and harassment suffered by the complainant.